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<p>[QUOTE=&quot;medoraman, post: 1176842, member: 26302&quot;]Small investors get excited. That is the entire basis for understanding them to me. Small investors typically do not understand the markets or what they are investing in, so they always choose what has returned the most recently. In practice, this leads to &quot;chasing returns&quot; and buying high and then selling low when they get discouraged.</p><p><br /></p><p>These are the reasons I see small investors actions the greatest contra indicator there is to investing. You always want to try to sell what they want to buy, buy what they are selling, and seek out assets they aren&#039;t aware of, because by the time they are aware of them its too late. This, of course, is predicated on buying low and not trying to time a bull run, like I know Cloud and Jim and others like to do. That is just not my favorite kind of investing, but it can work.</p><p><br /></p><p>Btw, not losing until you sell is a wives tail, since you always lose your opportunity cost constantly. Yes, you can always wait it out, like you could have from 1980 to 2009 to come out even, but then you lost almost 30 years of returns.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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