Financial Advice to Ignore – Even If You Get It From Your Mother!
Listed below are some time-honored maxims that we’ve all heard. Perhaps we even heard this from very trusted sources – like our Mothers. As you’ll see, it’s not always good advice… In the interest of full disclosure, my own Mother did not give me any of this advice. She tended to stay with the “wait an hour after eating to go swimming” and “you’ll put your eye out” variety of advice. These things have served me well through the years – thanks, Mom!
1. Buy Low, Sell High. This advice has endured through the ages, most likely because it is so simple. The problem is in practice – if it were simple to know when is low for a particular security, and when is high, then of course everyone would follow this maxim. Unfortunately, fortunes are lost every day by folks attempting to Buy Low, Sell High.