2. How to Be a Good Investor

Good investing requires financial intelligence. But your financial IQ is a fixed number, and you can improve it each and every day. Good investor are good students. It's simple as that. I spend hours each week reading the financial media (Forbes Web, Business Week web, Financial Times). I also read a lot of books, magazine and of course through Internet surfing; you never know where your next great idea is going to come from. The people who came up with theories such as portfolio optimization, diversification and market efficiency received their Nobel prizes for good reason. Investing is a combination of science (financial fundamentals) and art (qualitative factors). Knowledge is a money machine.

3. Know Yourself

Nobody knows you and your situation better than you do. Therefore, you may be the most qualified person to do your own investing - all you need is a bit of help. Identify the personality traits that can assist you or prevent you from investing successfully and manage them accordingly.