Investiiing!!

Mistake#1: I bought UITF in 2007 when Phil stocks are on record high.

Lesson#1: Be well informed before investing (in anything). Before investing in financial markets, read wall street journal or other financial related columns or at least watch or listen to business news. Know the trends, learn a bit of stock market history.

Mistake#2: I cashed-out in May 2009 when the stocks showed some recovery. From the news, I have an idea the stock market will recover in May and June. But I badly needed the cash in May so I have to withdraw. Unfortunately, the stocks gained more than 5% after my withdrawal.

Lesson#2: Do not invest in high-risk products if you can not hold it long-term. If you believe you'll be needing that cash soon (less than 3 years) then invest in safer products like time deposits or money market. I guess this is the reason why banks wants to know the percentage your investment from your total liquid assets. It is not advisable to invest most of your cash into high-risk products.