The Four Horsemen
In Chapter Nine of 3D Retirement Income, I discuss the Four Horsemen, the Behavioral Mistakes that Destroy Us as investors.
The First Horseman – Chasing Returns
The Grass is Always Greener in Another Investment
Our propensity to constantly change our investments is killing us.
The Second Horseman – Poor Diversification
All Our Eggs in One or Too Many Baskets
Both under-diversification and over-diversification can destroy our portfolios.
The Third Horseman – Market Timing
Lose by Not Winning
You must be right twice to play this game, and most people lose on one side or the other.
The Fourth Horseman – Panic
The Big Mistake
Seeking to stop our losses, we sell at the bottom of a crash, turing a temporary decline into a permanent loss. There is no recovering from his Horseman. Avoid him at all costs.
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