- Don’t invest in anything that you don’t understand. Yourself. Not because someone sold it to you or because others are doing it.
- Don’t pay high fees for investment products unless you know why the product is worth it. Many are not.
- Don’t assume that someone giving you financial advice has their incentives aligned with you doing well. Most people in finance can (and sometimes do!) make a lot of money while not adding value. It is not that they set out to purposefully do this, it is just that the way they get compensated frequently lacks alignment with maximizing your financial well-being.
- Don’t fall victim to behavioral marketing tactics. Robert Cialdini’s Psychology of Influence is an excellent book to read to understand how they work. Also, check out this article that may help you learn how to practice behavioral defense: Behavioral Defense in Decision Making
- Don’t focus on the short-term, allow yourself to be unduly influenced by the financial news media, or let news about the market or the economy affect your long-term investing strategy.