Investors are constantly bombarded by what can only be described as noise about investment markets. Today, more than ever there's a continuous crush of headlines and Twitter feeds, as well as television and radio programs, that collectively provide ceaseless hype, misinformation and biased views.

The market gyrates constantly on headlines and sound bites, but you should pay them little heed. Trading on day-to-day news can be dangerous to your financial health, especially if your long-term goal is wealth accumulation. Failing to filter out this media noise can make you a slave to it.
Instead, determine in advance what you're going to listen to-and from whom. Those you definitely should ignore include self-appointed financial gurus who commonly appear on television and radio programs and in articles. You've doubtless heard the saying, "Beware of strangers bearing gifts." Well, you should also beware of gurus with crystal balls bearing predictions.

Savoring a vintage wine is one of life's great pleasures. But often overlooked in the joy of consumption is the carefully calibrated journey from grape to glass. Similar levels of care are critical to good investment outcomes.
A host of variables can determine whether a wine is great, good, mediocre, or undrinkable. These include the quality of the grapes, soil, position of the vineyard, weather, irrigation, and timing of the harvest.

And picking the grapes isn't the end of it. The harvest must be sorted, the grapes crushed and pressed, then fermented, clarified, aged, and bottled. At any stage of the process, a lack of attention to detail can spoil the final outcome.

Do you know your risk tolerance as an investor? Some people think that because they know their attitude toward risk in general, they know about how much risk they're emotionally capable of taking with their investment portfolios.

But when financial markets decline, many of these people have a rude awakening. That's when they learn that they misjudged their tolerance for risk. Some people would never drive 90 miles an hour. But knowing that you're afraid of a car crashes is a lot different than accurately anticipating your emotional reaction to a market decline.