Resist the urge to take big risks with your retirement savings. Although it is true that trading in a tax-deferred account eliminates the need to consider capital gains taxes, trading costs can still significantly reduce your gains. If you're relying on your IRA to finance your retirement, don't gamble with it. If you want to take a flier, try using a small part of your other available assets. By nature, newspapers and TV broadcasts tend to focus on sensational, short-term events.
Coverage emphasizes stocks that are soaring, splitting, or sinking.
As for Internet chat rooms, they are rife with tips of questionable value. Don't confuse such tips with the serious research you should do before buying or selling an investment. Timing the Market Anyone who tries to profit from short-term price fluctuations is, in effect, making a prediction about the next fluctuation. When you began investing, you probably created a portfolio of stocks and bonds that suited your future needs, your tolerance for risk, and the length of time you expected to stay invested. Be wary of impulsive purchases that overconcentrate your portfolio in one stock or sector, thereby driving up the portfolio's risk profile.