8 steps are:

  1. Start investing – NOW
  2. Establish a goal – it doesn’t matter what it is as long as it matters to you
  3. Buy only stocks and stock mutual funds. Forget about asset allocation
  4. Swing for singles. You’ll strike out fewer times and hot some runs in the process
  5. Invest every month no matter how small the investment
  6. Buy and hold… and hold… and hold.. and hold
  7. Take what uncle Sam gives you – tax efficient policies… take them!
  8. Limit shocks to you finances – e.g. for shocks are divorce, too many children, changing jobs

Some mistakes…

  1. failing to start early
  2. Selling too soon
  3. Selling too late
  4. Blindly following the advice of friends, coworkers, and especially brokers
  5. Market timing
  6. ‘micro’ timing stock purchases
  7. speculating in future, options and speculative stocks
  8. reacting to news
  9. ignoring the ‘little thing’ of investing – tax + brokerage fees

Number of…

Selecting mutual finds…

Dollar cost averaging

an easy way to implement diversification in an investment program is by using this method. DCA takes emotion out of the investment process and requires you to make regular contributions to your investments, regardless of market levels