6 deadly investing mistakes

Friday September 5, 6:00 am ET
William Lynott These are scary times for anyone trying to build or preserve their retirement accounts. Today's roller coaster ride of economic ups and downs -- with swings in the Dow Jones average of 500 points or more in just a few days -- is enough to churn stomachs in all but the most steely nerved passengers.

Is this simply another predictable, even healthy, correction in a long-term bull market? Or are we poised for an investor meltdown?

No one knows for sure, of course. Even a modern-day Nostradamus couldn't tell us what's going to happen tomorrow. But no matter what, avoiding these six costly investment mistakes will help you to keep your head above today's troubled waters.

Stick with fundamentals

Most financial professionals believe the current slump is a predictable -- and even healthy -- correction in the long-term bull market. Other forecasters are far more gloomy. Either way, it's critical to avoid these potentially deadly mistakes.

6 deadly investing mistakes:

1. Panicking over market fluctuations
2. Reacting to daily economic reports
3. Turning off your buying during a downturn
4. Trying to time the market
5. Not maintaining appropriate asset allocation
6. Abandoning your investment strategy

http://biz.yahoo.com/brn/080905/26274.html