What's the first thing you do in the morning? If you switch
on CNBC, get your fix of The Wall Street Journal or check your
stocks on the Internet before pouring your coffee, you might be
obsessing over the stock market. Although such diligence could lead
to profits, it could also lead to needless worry, panic and way too
much trading. Pay attention, but don't be too anxious.
Worse still is letting those talking heads go to your head. By
the time you've heard it on national news, you're hardly
the first to act. A lot of financial information is just
that--information. Interpreting that information is what separates
winners from losers. Unless you're a very experienced trader or
plan to make trading your full-time occupation, resist the
temptation to day trade. This isn't investing; it's
gambling. And while it may be an avocation for some, it's a
dangerous addiction for others.