Fear causes people to panic when the market is dropping. Obviously this makes for poor long term results. The experienced investors beat the inexperienced investors in down markets, because the inexperienced investors panic and sell and the experienced investors buy when the market is down. History has shown that the best time to buy is during times of distress, however very few have the courage, means and discipline to do this.

Be realistic about expected investment returns. Generally speaking 10% is the maximum benchmark over the long term. If anyone is offering you significantly more than this, it should raise a red flag of warning for you. Don’t expect to beat the market averages. Your long term investments should be based on buying and holding good investments, not trying to time when you should be in or out of a particular investment.