Sin #3 - Lust
Still remember this investment motto: "Don't fall in love with a stock"? If you are addicted to a company, an economic sector or a particular trading strategy, you may suffer from the sin of lust.
Before its collapse, many US investors were lusting for Enron by putting most of their stakes on it. Yes, you may have a very brilliant record of investing in a company, but it doesn't imply this company would never fail. The market conditions could change to make your past successful ways no longer valid. If you feel like "betraying a friend" when you consider downsizing your holding of a stock, you are in danger of losing all in one game.
What can you do before you know too late your lust is wrong? My suggestion is: diversification. Even you are a great optimist of the property sector, you may still diversify at least a portion of your portfolio to other sectors. Thinking of alternatives is the best way to cope with changes.
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