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Then there are the investors who follow the herd as the market is going up, investing in hot sectors on a whim, often taking on more risk than they might otherwise.
"It's not only being too aggressive, but not having a whole plan. When the market is going up, they take on too much risk for their investment profile. (Then) when the market pulls back their accounts, (they) see a decline and they go to cash without a plan on when to get back in," says Christopher Zeches, CFP professional and managing partner of Zeches Wealth Management in Phoenix and Tucson, Arizona.
In a similar vein, there are savers who manage to sock away money, but never come up with an investing plan.