1. Don't compete with big guys. They are always faster.
  2. It is not necessary true that long term broad investment will grow on average.
  3. Missing the good days on market will likely negate all the earnings.
  4. News are not always new.
  5. Calm days just like the weather tend to cluster with calm days.
  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. Can deduct up to 3k from regular income.
  10. Diversify the portfolio with glabal market funds.
  11. Consider tax-managed funds if  you fall under high-text bracket.

A sample low-risk portfolio allocations

  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%