Money tip
In the September issue of Money magazine, Jason Zweig offers secrets of successful investing:
¢ Don’t go back for more. Anyone who has made a bundle off a lucky investment will be tempted to angle for a second windfall, but the odds of getting one are slim.
¢ Divide and conquer. Play the odds by putting 90 percent of your money in a low-cost, diversified index fund. The other 10 percent can be used for purely speculative trades. But once it’s gone, it’s gone. Don’t dip into your savings to replenish it, Zweig cautions.
¢ Don’t trust your instincts. “Many of the world’s best investors have learned to treat their own feelings as reverse indicators,” Zweig writes. The lesson: When it comes to investing, your gut may be lying.
¢ Stay calm. If great gains are driving you to buy, or losses propelling you to sell, think before you react. Don’t make decisions quickly.