The book, The Intelligent Portfolio: Practical Wisdom on Personal Investing from Financial Engines by Christopher L. Jones, is a very comprehensive book which covers risk versus rewards, past performance versus future expected returns, market timing versus long term investing, and investing in individual stocks versus investing in mutual funds. He also discusses diversification, fees and expenses, and the tax consequences of investing. All of his recommendations are backed up with extensive research and presented in an easy-to-understand manner. The following is an excerpt from his book about retirement investing: An Unnecessary Gamble The Biggest Mistake in Retirement Investing By Christopher L. Jones Author of The Intelligent Portfolio: Practical Wisdom on Personal Investing from Financial Engines One of the most common mistakes made in the retirement investing world, particularly among 401(k) participants, is over-concentration in an employer's stock. In an analysis of more ...

The point of showing my order book yesterday was to emphasize how my number one focus is always risk management. At the time I entered many of the stocks, I expected them to continue to trend for most of the day. Even with expectations for continued movement higher, I sold partial positions into strength early on. I tend to go in aggressively as momentum builds and then scale out into continued strength. It is never my thought that I am selling at the top, instead, I am trying to reduce risk by realizing some profits and reducing my exposure. There are many times that a stock will continue to go higher without me and I am comfortable with that because, as we saw yesterday, the market can reverse quickly and erase all profits if you do not aggressively manage open positions. Some people say ...