Every year at this time, the financial media is filled with lists of how to be a better investor.
This got me to thinking: If these lists are so effective, why do we need a fresh set of them every year? Two answers come immediately to mind. First, investors are fickle and easily dissuaded by their emotions, compelling sales pitches and of course the ups and downs of the markets. Second, many of the items on these lists are vague and fail to tell people what they should actually do.
Ignoring that first problem, at least for now, I’m going to propose seven steps you can take that will actually make a difference.
First, let’s look at a few common “rules” that aren’t really…