Misconceptions zap the portfolio returns for many investors. What are some of the biggest misconceptions?

A consistent approach is necessary to reap true, sustainable long-term gains from investing, fending off market forces outside our control and sailing through any storms we encounter. However, there is one aspect of investing that even the most consistent, calm and reasoned investors often fall prey to: misconceptions masquerading as “conventional wisdom” or worse, as fact.
Many investing “gamblers” will mistake a lucky streak, or even a lucky moment, as a testament of skill, accepting luck for knowledge, that they know “something” others do not and that their actions can be repeated, by themselves, by others, at any given time regardless of circumstance just by following a few simple tips.
Other common misconceptions befuddling many investor return streams are Market Timing, Cash is King and Index Funds are Always Safest.
For more on common misconceptions in investing, check out our new article, Misconceptions are the Vultures of Investing, this Thursday.