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178 Don’t Make Me Say I Told You So

► Short-term focus: Focus on the short term, which is
extremely common with investors today, means trying to

do what’s best today, this week, or this month. That is, by
definition, market timing.

► Managing by media: Paying daily attention to the
financial media leads to investment decisions based on

feelings of greed or fear. This leads to decisions based on
market timing.

► Chasing yesterday’s winners: This attempt to find the

best investment right now by seeing what did the best
over the last six months or year is market timing.

Market Timing Is Impossible and

Unnecessary

Stock market corrections cause many, if not the majority of,
investors to abandon their investment plan by moving out of

stocks with the intention of moving back in when things seem

better – often with disastrous results. It’s difficult for investors to
remember their original plan when the market falls, but those
who understand that timing the market is a loser’s game will be

less prone to reacting to the market’s short-term extremes. Not

only should investors not bail out of the market during times of

Chapter 4: The Most Common Investor Mistakes