Investing is like the force. It can be your best friend or your worst enemy, a great ally or a terrible enemy. In most cases it is your best friend, but lets take a look at some of the most common mistakes that are made.

5. Confusing high risk and greediness …and… confusing conservatism and cowardice. This is for all of you P2P investors going after the 30% interest rates people…or those of you who probably got NASDAQ-ized in 2000. On the other side, there are all of you stashing cash under your mattress or having everything in that 3% ING savings account (but make sure and open one…see left sidebar).

4. Getting emotionally attached to a stock. A stock is not your friend, and it most definitely will not hold it against you if you sell it. Most people don’t even realize when they have fallen in love with their stocks, but you see it when they struggle to sell. If you need to sell, sell.

3. Getting under the boulder. “Do NOT sell Bear Stears, Bear will be fine” sound familiar? How about the people who bought it at half price? Then at quarter price? “How much lower can it possibly go?” The answer is, if a boulder is rolling downhill at you, get the hell out of the way.

2. Email Stock tips, enough said. Also, penny stocks, popular stocks, and stocks from internet sites that start with blog dot. If Jim on the corner says its a good stock, that doesn’t make it a good stock. Would you buy a car just cause Jim on the corner said its BA? Didn’t think so.

1. Paying high fees or expenses for load funds. Come to think of it, paying any sort of front or back loads at all. You involved in some mutual funds like this? Congrats, you are making someone rich, and I will give you a hint: its not you.

And remember ladies and gentleman: when your mutual fund manager starts complaining, tell him or her to mail all complaints to suckit@thepennysaved.com

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