How Did the Average Stock Fund Investor Lose Twice as Much as the Market Last Year?

The annual survey of individual investor behavior was recently released and revealed that lots of investors are still doing it wrong. The report found that the average stock fund investor lost 9.4 percent last year, while the S&P 500 fell by about 4.5 percent. Listen to Ric Edelman share a surprising reason why so many investors underperform the market and how you can learn from the average investor's mistakes.

An index is a portfolio of specific securities (common examples are the S&P, DJIA, NASDAQ), the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. Past performance does not guarantee future results.