{"product_id":"the-5-mistakes-every-investor-makes-and-how-to-avoid-them-isbn-9781119794332","title":"The 5 Mistakes Every Investor Makes and How to Avoid Them","description":"\u003cp\u003e\u003cb\u003eThis book, from New York Times best-selling author Peter Mallouk, will help you avoid the mistakes that stand in the way of investment success!\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA reliable resource for investors who want to make more informed choices, this book steers readers away from past investment errors and guides them in the right direction. \u003ci\u003eThe Five Mistakes Every Investor Makes and How to Avoid Them\u003c\/i\u003e, Second Edition, focuses on what investors do wrong, so you can avoid these common errors and set yourself on the right path to success. In this comprehensive reference, you'll learn to navigate the ever-changing variables and market dilemmas that can make investing a risky and daunting endeavor. In this Second Edition, Peter Mallouk shares new investment techniques, an expanded discussion of the importance of disciplined investment management, and updated advice on avoiding common pitfalls.\u003c\/p\u003e \u003cp\u003eIn this updated Second Edition, you'll find a workable, sensible investment framework that shows you how to refrain from fighting the market, misunderstanding performance, and letting your biases and emotions get in the way of investing success.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eOffers updated discussion and investment techniques to improve your performance in today's market conditions\u003c\/li\u003e \u003cli\u003eDetails the major mistakes made by professional and everyday investors, including fighting the market, overactive trading, and not having an endgame\u003c\/li\u003e \u003cli\u003eHighlights the strategies and mindset necessary for navigating ever-changing variables and market dilemmas\u003c\/li\u003e \u003cli\u003eIncludes useful investment techniques and discusses the importance of discipline in investment management\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eThe Five Mistakes Every Investor Makes and How to Avoid Them\u003c\/i\u003e, Second Edition leads you in the right investing direction and provides a roadmap that you can follow for a lifetime.\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xv\u003c\/p\u003e \u003cp\u003eAbout the Author xvii\u003c\/p\u003e \u003cp\u003eLegal Disclosure xix\u003c\/p\u003e \u003cp\u003eIntroduction The Market Wants to Be Your Friend xxi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eMistake #1 Market Timing 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Idiots 5\u003c\/p\u003e \u003cp\u003eWhy Is It So Hard to Beat the Market? 6\u003c\/p\u003e \u003cp\u003eEfficient Markets 7\u003c\/p\u003e \u003cp\u003eThe Evidence (Research and Stuff) 8\u003c\/p\u003e \u003cp\u003eThe Media Get It Wrong, Over and Over Again 8\u003c\/p\u003e \u003cp\u003eEconomists Get It Wrong, Over and Over Again 9\u003c\/p\u003e \u003cp\u003eInvestment Managers Get It Wrong, Over and Over Again 14\u003c\/p\u003e \u003cp\u003eNewsletters Get It Wrong, Over and Over Again 17\u003c\/p\u003e \u003cp\u003eYour Buddy 18\u003c\/p\u003e \u003cp\u003eStrategies That Don't Sound Like Market Timing but Are Market Timing—Oh, and They Don't Work Either 19\u003c\/p\u003e \u003cp\u003eAsset-Class Rotation 19\u003c\/p\u003e \u003cp\u003eTactical Asset Allocation 20\u003c\/p\u003e \u003cp\u003eStyle Rotation 20\u003c\/p\u003e \u003cp\u003eSector Rotation 20\u003c\/p\u003e \u003cp\u003eWhat Smart Investors Have to Say on Market Timing 20\u003c\/p\u003e \u003cp\u003eKnowing All This, Why Would Anyone Market Time? 21\u003c\/p\u003e \u003cp\u003eCorrections 22\u003c\/p\u003e \u003cp\u003eBear Markets: An Overview 26\u003c\/p\u003e \u003cp\u003eBear Markets Happen for Different Reasons, but the Outcome Is Always the Same 27\u003c\/p\u003e \u003cp\u003eBear Markets Are Not Predictable 28\u003c\/p\u003e \u003cp\u003eWhen Bear Markets \"Turn,\" They Make People on the Sidelines Look Silly 30\u003c\/p\u003e \u003cp\u003eThe Market Is Volatile—Get Used to It 30\u003c\/p\u003e \u003cp\u003eYou Can't Wait for Consumers to Feel Good 31\u003c\/p\u003e \u003cp\u003eLearning to Accept the Bear Markets 33\u003c\/p\u003e \u003cp\u003eMiscalculating the Risk of Market Timing 34\u003c\/p\u003e \u003cp\u003eBut What If I Am Perfect? 34\u003c\/p\u003e \u003cp\u003eLump-Sum Investing versus Dollar-Cost Averaging 36\u003c\/p\u003e \u003cp\u003eLearning to Fly 40\u003c\/p\u003e \u003cp\u003eAvoiding Mistake #1—Market Timing 41\u003c\/p\u003e \u003cp\u003e\u003cb\u003eMistake #2 Active Trading 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe History of Active Trading 44\u003c\/p\u003e \u003cp\u003eActive Investment Managers Lose to Indexing 45\u003c\/p\u003e \u003cp\u003eNewsletters Lose to Indexing 45\u003c\/p\u003e \u003cp\u003eActive Mutual Funds Lose to Indexing 45\u003c\/p\u003e \u003cp\u003eSurvivor Bias (a.k.a. Mutual Fund Performance Is Even Worse Than the Data Suggests) 47\u003c\/p\u003e \u003cp\u003eWhat About the Winners, Huh? What About the Winners?! 48\u003c\/p\u003e \u003cp\u003eHedge Funds Lose to Indexing 51\u003c\/p\u003e \u003cp\u003eEndowments—Misperception of Performance 56\u003c\/p\u003e \u003cp\u003eVenture Capital (Sounds Sexy but Usually a Dog) 57\u003c\/p\u003e \u003cp\u003eThe Taxman Cometh (a.k.a. Dear Goodness, It Gets Worse) 59\u003c\/p\u003e \u003cp\u003ePortfolio Activity Hurts Performance 59\u003c\/p\u003e \u003cp\u003eBut Doesn't Active Management\u003c\/p\u003e \u003cp\u003eWork in a Down Market? 60\u003c\/p\u003e \u003cp\u003eWhy Indexes Win 61\u003c\/p\u003e \u003cp\u003eBut Indexing Results in Average Returns 62\u003c\/p\u003e \u003cp\u003eS\u0026amp;P 500, Here I Come! 62\u003c\/p\u003e \u003cp\u003eAvoiding Mistake #2—Active Trading 64\u003c\/p\u003e \u003cp\u003e\u003cb\u003eMistake #3 Misunderstanding Performance and Financial Information 65\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMisunderstanding #1—Judging Performance in a Vacuum 65\u003c\/p\u003e \u003cp\u003eMisunderstanding #2—Believing the Financial Media Exists to Help You Make Smart Decisions (a.k.a. the Media Is Killing You) 67\u003c\/p\u003e \u003cp\u003eMisunderstanding #3—Believing That the Market Cares About Today 71\u003c\/p\u003e \u003cp\u003eMisunderstanding #4—Believing an All-Time High Means the Market is Due for a Pullback 74\u003c\/p\u003e \u003cp\u003eMisunderstanding #5—Believing Correlation Equals Causation 77\u003c\/p\u003e \u003cp\u003eOctober Is The Worst Month to Invest 77\u003c\/p\u003e \u003cp\u003eSell in May and Go Away 78\u003c\/p\u003e \u003cp\u003eMisunderstanding #6—Believing Financial News Is Actionable 79\u003c\/p\u003e \u003cp\u003eMisunderstanding #7—Believing Republicans Are Better for the Market Than Democrats 80\u003c\/p\u003e \u003cp\u003eMisunderstanding #8—Overestimating the Impact of a Manager 82\u003c\/p\u003e \u003cp\u003eMisunderstanding #9—Believing Market Drops Are the Time to Get Defensive 83\u003c\/p\u003e \u003cp\u003eAvoiding Mistake #3—Misunderstanding Performance and Financial Information 84\u003c\/p\u003e \u003cp\u003e\u003cb\u003eMistake #4 Letting Yourself Get in the Way 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFear, Greed, and Herding 85\u003c\/p\u003e \u003cp\u003eThe Overconfidence Effect 89\u003c\/p\u003e \u003cp\u003eConfirmation Bias 93\u003c\/p\u003e \u003cp\u003eAnchoring 95\u003c\/p\u003e \u003cp\u003eLoss Aversion 97\u003c\/p\u003e \u003cp\u003eMental Accounting 98\u003c\/p\u003e \u003cp\u003eRecency Bias 100\u003c\/p\u003e \u003cp\u003eNegativity Bias 103\u003c\/p\u003e \u003cp\u003eThe Gambler 105\u003c\/p\u003e \u003cp\u003eAvoiding Mistake #4—Letting Yourself Get in the Way 106\u003c\/p\u003e \u003cp\u003e\u003cb\u003eMistake #5 Working with the Wrong Advisor 107\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMost Advisors Will Do Far More Harm Than Good 108\u003c\/p\u003e \u003cp\u003eAdvisor Selection Issue #1—Custody 108\u003c\/p\u003e \u003cp\u003eAdvisor Selection Issue #2—Conflict 113\u003c\/p\u003e \u003cp\u003eTest #1—Independent Advisor or Broker? 114\u003c\/p\u003e \u003cp\u003eInvestment Advisor Defined 114\u003c\/p\u003e \u003cp\u003eBroker Defined 114\u003c\/p\u003e \u003cp\u003eSo What's the Difference? 115\u003c\/p\u003e \u003cp\u003eTest #2—Pure Independent versus Independent and Broker 116\u003c\/p\u003e \u003cp\u003eTest #3—Proprietary Funds versus No\u003c\/p\u003e \u003cp\u003eProprietary Funds 117\u003c\/p\u003e \u003cp\u003eA Final Thought on Conflicts 118\u003c\/p\u003e \u003cp\u003eAdvisor Selection Issue #3—Competence 119\u003c\/p\u003e \u003cp\u003eCompetence Check #1—Do the Advisor's Credentials Meet Your Needs? 120\u003c\/p\u003e \u003cp\u003eCompetence Check #2—Is the Advisor Right for You? 120\u003c\/p\u003e \u003cp\u003eCompetence Check #3—Is the Advisor Following a Process That You Agree With? 120\u003c\/p\u003e \u003cp\u003eA Final Thought on Advisors—Principles 121\u003c\/p\u003e \u003cp\u003eAvoiding Mistake #5—Choosing the Wrong Advisor 122\u003c\/p\u003e \u003cp\u003e\u003cb\u003eMistake #6 No Mistaking 125\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRule #1: Have a Clearly Defined Plan 125\u003c\/p\u003e \u003cp\u003eRule #2: Avoid Asset Classes That Diminish Results 127\u003c\/p\u003e \u003cp\u003eCash—The Illusion of Safety 127\u003c\/p\u003e \u003cp\u003eThe Illusion of Gold as a Way to Grow Wealth 129\u003c\/p\u003e \u003cp\u003eRule #3: Use Stocks and Bonds as the Core Building Blocks of Your Intelligently Constructed Portfolio 131\u003c\/p\u003e \u003cp\u003eRule #4: Take a Global Approach 138\u003c\/p\u003e \u003cp\u003eRule #5: Use Primarily Index-Based Positions 140\u003c\/p\u003e \u003cp\u003eRule #6: Don't Blow Out Your Existing Holdings 140\u003c\/p\u003e \u003cp\u003eRule #7: Be Sure You Can Live with Your Allocation 142\u003c\/p\u003e \u003cp\u003eRule #8: Rebalance 143\u003c\/p\u003e \u003cp\u003eRule #9: Revisit the Plan 144\u003c\/p\u003e \u003cp\u003eThe Ultimate Rule: Don't Mess It Up! 145\u003c\/p\u003e \u003cp\u003ePortfolio Example 146\u003c\/p\u003e \u003cp\u003eThe \"I Want to Beat the Market\" Portfolio 146\u003c\/p\u003e \u003cp\u003eThe \"I Need 7 Percent to Hit My Long-Term Retirement Goal\" Portfolio 146\u003c\/p\u003e \u003cp\u003eThe \"Get Me What I Need for the Rest of My Life with the Least Volatility Possible\" Portfolio 147\u003c\/p\u003e \u003cp\u003eThe \"I Have More Money Than I Will Ever Need and I Want It to Grow with Minimal Volatility\" Portfolio 148\u003c\/p\u003e \u003cp\u003eThe \"I Have More Money Than I Will Ever Need, Volatility Doesn't Bother Me, and I Want It to Grow Along with the Market\" Portfolio 148\u003c\/p\u003e \u003cp\u003eA Path to Success: Intelligent Portfolio Construction 150\u003c\/p\u003e \u003cp\u003eYou're the One 151\u003c\/p\u003e \u003cp\u003eConclusion Let's Roll!! 153\u003c\/p\u003e \u003cp\u003eReferences 155\u003c\/p\u003e \u003cp\u003eIndex 163\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePETER MALLOUK\u003c\/b\u003e is President and Chief Investment Officer of Creating Planning and its affiliated companies. Peter's companies provide comprehensive wealth management services to their clients, including investment management, financial planning, charitable planning, retirement plan consulting, and tax and estate planning services.\u003c\/p\u003e \u003cp\u003eInvesting can be a complicated and tricky act, with ever-changing variables and market dilemmas. Some investors struggle and make irreversible mistakes. Others thrive and profit handsomely. So, what sets the latter group apart from the former? Is it just luck, or is it something more?\u003c\/p\u003e\u003cp\u003eAccomplished investor and author Peter Mallouk answers those questions, and more, in the newly revised \u003ci\u003eSecond Edition of The 5 Mistakes Every Investor Makes and How to Avoid Them\u003c\/i\u003e. The book discusses new investment techniques that significantly improve portfolio performance over time. It also maintains its emphasis on the continued importance of disciplined investment management.\u003c\/p\u003e\u003cp\u003eYou’ll learn from updated commentary and advice on common mistakes made by seasoned professionals and everyday investors like fighting the market, trading too actively, misunderstanding performance, letting yourself get in the way, and not having an endgame. You’ll also discover a workable and practical framework that will lead you in the right direction and provide you with a roadmap you can follow for the rest of your investing life.\u003c\/p\u003e\u003cp\u003eLearn to avoid the pitfalls and mistakes made by the majority of investors and abide by the strategies and mindsets necessary to find success in rapidly evolving markets. The book contains advice useful in any market, from the chaos of the COVID-19 crash and rebound to more typical scenarios.\u003c\/p\u003e\u003cp\u003ePerfect for individual investors seeking to get the most out of their portfolios, \u003ci\u003eThe 5 Mistakes Every Investor Makes and How to Avoid Them\u003c\/i\u003e will also earn a place in the libraries of people  hoping to begin their investing careers on the right foot. It is an invaluable guide with in-depth advice that will form the foundation for a lifetime of profitable investing.  \u003c\/p\u003e\u003cp\u003eNAVIGATE ANY MARKET WITH SKILL BY AVOIDING THE MISTAKES THAT STAND IN THE WAY OF INVESTMENT SUCCESS\u003c\/p\u003e \u003cp\u003eIn \u003ci\u003eThe 5 Mistakes Every Investor Makes and How to Avoid Them\u003c\/i\u003e, accomplished investor and author Peter Mallouk delivers a compelling argument for the continued importance of disciplined investment management and careful avoidance of common investing pitfalls.\u003c\/p\u003e \u003cp\u003eYou'll discover advice that has stood the test of time and proven itself applicable to virtually any sort of market, from the financial crisis in 2008-09 to the following recovery. The book includes updated commentary and a practical roadmap you can follow for the rest of your investing life. It is a comprehensive reference that will allow you to navigate ever-changing market conditions and manage your risk efficiently and effectively. Finally, you'll avoid the most common and serious errors that individual investors make and set yourself on the right path to success and profit.\u003c\/p\u003e \u003cp\u003eIdeal for first-time investors just dipping their toes into the market, \u003ci\u003eThe 5 Mistakes Every Investor Makes and How to Avoid Them\u003c\/i\u003e also deserves a place on the bookshelves of individual investors already familiar with the market who hope to avoid the mistakes their colleagues and friends are making.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990149644517,"sku":"NP9781119794332","price":28.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119794332.jpg?v=1761786691","url":"https:\/\/k12savings.com\/products\/the-5-mistakes-every-investor-makes-and-how-to-avoid-them-isbn-9781119794332","provider":"K12savings","version":"1.0","type":"link"}