Avoid investment pain by knowing lessons from the crash - baltimoresun.com:
"Studies in 'behavioral finance' show that people are poor at understanding trends of all kinds, not just when investing. If we see something on an upswing or positive trend, we figure it will continue, and if we see something on a horrible or scary trend, we figure that's for keeps too. That gets people in awful trouble with investments. In 2000, people poured money into technology stocks because they had climbed almost 100 percent the previous year; then they plunged 80 percent. In 2005, people figured they couldn't go wrong buying homes and flipping them. You know the rest of that story."