1. Don’t compete with big guys. They are always faster.
2. It is not necessarily true that long-term broad investments will grow on average.
3. Missing the good days on the market will likely negate all the earnings.
4. News is not always new.
5. Calm days, just like the weather, tend to cluster together.
6. Outperforming investment funds are not a good investment.
7. Mutual funds with high fees rarely beat the market and mostly underperform.
8. Commissions add up. The more you trade the worse you do.
9. Sell losers for tax benefits. You can deduct up to $3k from regular income.
10. Diversify the portfolio with global market funds.
11. Consider tax-managed funds if you fall under a high-tax bracket.

A sample low-risk portfolio allocation:

1. Cash 5%
2. Bonds 27.5% VBIIX 7.5% VGOVX 7.5% VDIGX 12.5%
3. Real estate 12.5% VGSIX or FRESX
4. Stocks 55% VTSMX 27% VTIAX 14% VEMRX or FEMKX 14%