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One Risk You Can Control: Bad Timing

The numbers suggest we do quite a bit of damage to our portfolios through poorly timed investments. Here's some corrective medicine.


Note: This article is part of's November 2014 Risk Management Week special report.

In investing, there's a long list of events we can't control--wars, currency crises, economic stagnation, the level of interest rates--and we manage these risks as best we can through diversification. But there are a few things completely within our control, which in theory should be easier to manage. One of these is the timing of our purchases and sales.

Haywood Kelly, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.