Ignore Your Gut Instincts When Investing

One of the smartest things you can do as an investor is to stop making moves based on your gut instincts. You will probably become a much better investor, because studies show your portfolio is likely to perform better if you avoid excessive trading.

It's tough to ignore these impulses when stocks are turbulent, up one day and down the next. But if you're trying to time the market based on hunches -- your own or those you hear from friends, family or media "experts" -- you could be setting yourself to make the wrong investment decisions, causing your investments to underperform.

Emotional decisions are usually bad decisions; after