Two of the biggest demons you have to deal with when investing are fear and greed. Both are valid human emotions, but both can get in the way of logical, disciplined investing. If you can manage both your greed and your fear, you can stay away from the lemming-over-the-cliff mentality that grips so many other investors. This applies to any short term comparison between different markets, assets or managed (mutual) funds.
Temptation can be a scary thing and the temptation to run to the smoking hot and fashionable investment of the week is extremely high, so high in fact that many investors take to it like a month to a flame. If you don’t want to get burned, avoid ‘hot’ investment tips from your friends and use discipline as your number one investment strategy.
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