Serene Investing

Lord, grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference. This means don't invest in things you don't know much about. I made a real estate investment in a marginal property and lost hundreds of thousands of dollars. It makes every mistake I ever made in the stock market appear trivial. Blind faith, hunches, and the assumption that there is a solution to every problem are what lead people into financial disasters. You must know your limitations and not fall prey to gimmicks, fads or addictions.

- A.M., Honolulu

The Fool Responds: You're right. Hunches and assumptions can sink us financially. They can sink us in stocks, too, when we blindly act on a hot stock tip or assume that just because a product is popular, that its company's stock will go through the roof. (The stock may already be overpriced.) It's best to take the time to learn all about investing before jumping into things that seem too good to be true. You might start at www.fool.com/investing.htm.

Do you have an embarrassing lesson learned the hard way? Boil it down to 100 words (or less) and send it to The Motley Fool c/o My Dumbest Investment. Got one that worked? Submit to My Smartest Investment. If we print yours, you'll win a Fool's cap!