We're now aware that penny stocks, day trading, and the risky business of futures and options are possible "black holes" that are lying in wait to gobble up our hard earned funds, never to be seen again. These are the kinds of things "out there" that we probably should avoid. And, they have the potential of jeopardizing our BUYandHOLD strategies, thus causing us much guilt in the future.

Indulging in these potential investment "black holes" will leave us empty handed and wondering, "What was I thinking? Why did I do that?"

Regrettably, once we've made those mistakes, there is no going back. Once our money is gone, there's little chance of recovering it. As with most mistakes, we can only make them, learn from them, and vow to never make the same mistake twice.

Thankfully we've looked at some of the "mistakes" that we could have made, but didn't. The above listed investment strategies are just not worth our time or money.

So, let's continue on our proactive strategy of buying and holding for the long term.

Mr. Carlson, in his book Eight $teps to $even Figure$, again offers his wise and proven advice to help us hang onto our money for the future. He encourages us to avoid "common investment goofs" and he helps us understand how these "goofs" operate. Let's take a little closer look at these and incorporate this knowledge into our own investment strategies.

He begins his discussion of "goofs" by indicating that these are "caused by emotions, personality traits, or human psychology."

Ah ha! I knew my 15-years as a therapist in the mental health field would finally pay off! Human psychology is my forte, so let's look at some of these pitfalls, as preventative measures and ways to avoid having to ask ourselves, "Now, why in the world did I do that?"

Mr. Carlson begins this important discussion with reference to another book that he highly recommends, Why Smart People Make Big Money Mistakes written by Gary Belsky and Thomas Gilovich. The authors of this book denote common factors "that cause investors to make bad decisions."

Let's take a look at one of these.

It is called "The ego trap." "This classic investment mistake occurs after an investor has tasted success. The investor believes that he or she is a genius and can do no wrong."

And, as the author of the Mom Chronicles, I humbly stand before you and admit that I am…guilty as charged. I have fallen for this "goof" several times in my own journey. In my defense, however, I must say that the stock market has always been a fear of mine. I have always looked at this monster in awe because it all seemed so "untouchable" to me. I admired those who understood it and I secretly wished that I could, as well.

Once I jumped in and started tackling the "ins and outs", I looked at myself in disbelief! That's it! That's all there is to learning this thing! You mean I've had fears about this thing all my life and it's really not that hard to learn?

Sheesh. Piece of cake!

Translation: I've tasted success. I'm a genius therefore I can do no wrong.

Warning: Mr. Carlson says this is a "common investment goof" and he's absolutely right. Next week I'll disclose my "goof" to prevent you from doing something similar.

Thank you for joining me,

Joyce