The chart below is a few years old but its grim story is timeless: Virtually all investors do worse than average. Most lag simple index funds by miles!
How is it possible for most investors, including many pros, to lag simple index funds? Isn't average average? The first reason is being in and out of the market at the wrong times. Hunches about the market's direction are usually wrong. Second, chasing fads. Third, falling for stock scams... often penny stock scams. Fourth, several academic studies found that investors trade too often. Put another way, "The More You Trade, The More You Lose."
The damning problem is the average investor is his own worst enemy
