Top Ten Investing Mistakes I've Made

When it comes to investing, just like Sinatra, "regrets, I've had a few." I've assembled the top ten of about a thousand that I've been inexperienced enough to make and in some cases, stupid enough to repeat. You'll probably see a few that you've done.

1. Investing money that would be better used for something else like paying of debt or building up an emergency fund of 3-6 months. There is no easier way to get an 18% return risk free; pay off your credit card debt.

2. Following stock tips. I am probably most ashamed of this habit. It's a lethal combination of laziness and greed.

3. Trading when I should be investing. I don't have the correct temperment to make money as a trader. I am either in early or overstay my welcome when it comes to short-term moves.

4. Not doing enough research. Screening is not research. It's just the beginning.

5. Not investing regularly. You should make investing a monthly bill that you pay to yourself.

6. Trying to get rich quickly by buying penny stocks. This is an excellent way to lose money...quickly.

7. Chasing performance. I have NEVER made money momentum investing. Many people do. I can't. I get too greedy.

8. Ignoring the benefits of diversification. The only free lunch on Wall Street. Don't go overboard though. Only have as many positions as you can monitor effectively. Also, don't forget about rebalancing.

9. Monitoring investments to frequently. There was a time that I checked the value of my holdings every day. Now I do it about once a week. Eventually, I'd like to make it quarterly.

10. Being inpatient. This is really important as a value investor. It helps your patience if your stocks pay dividends.