One of the mistakes I’ve made in investing, especially starting out, was to try and live in a vacuum. What I mean is, I’d made my stock pick, buy my shares and then live [or die] with the results. As I’ve matured in my investing I’ve learned to do one very important thing…sell my picks.

If I can’t go to a neutral person and convince them that the stock I’m about to purchase is a good idea, then it probably isn’t!

One of the easiest ways to get this kind of feedback is to join and investment club. I have been a member of a couple and both times, it has been very rewarding. Just having someone tell you “You’re crazy” when you present you latest pick based on a bulletin board rumour, can save you thousands:). You will get to see other people’s styles and rationale behind their stock picks, as well as seeing your own ways more clearly.

The Motley Fool has some articles on investment clubs and iClub.com provides tools for investment clubs. Also, check out the National Association of Investors article on investment clubs.

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This entry was posted on Monday, June 27th, 2005 at 6:22 pm and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.