Investing

Do big losses in your investing portfolio have you wondering if you've got what it takes to be a successful investor? If you're doubting yourself right now, don't. In all likelihood, you're already doing exactly what you should be to succeed with your investments.

You never cease to amaze me.

Was I a little rough? Yes. Did I bash the mutual fund industry for robbing us blind? Sure. Did I expect some hate mail? I guess, but not this.

I learned something interesting the other day. It seems that a study from Carnegie Mellon University has shown that when people are feeling poor -- whether or not they actually are -- they're likely to spend more money on lottery tickets.

After two years of talk about our mortgage mess, plummeting home prices, bedraggled builders, and foreclosure frenzy, could we still not have hit the bottom for housing? While that's not a pleasant prospect, especially if you live in one of those hard-hit areas where home prices are now just shadows of their former selves, abundant evidence suggests that a real recovery may remain a long way off.

Together, some eight years ago now, we watched the beginning of a downturn that cut the S&P 500 in half and dropped the Nasdaq nearly 80% off its highs. It was a maddening time for investors. Telecom and energy executives were caught with their hands in the corporate cookie jar. Technology shares plummeted, with hundreds of companies vanishing from sight. Very few bear markets in U.S. history have hurt so much

In the ice-cream parlor of investment choices, bonds often get the rep of being plain vanilla. After all, bonds don't typically offer up the chance for double-digit gains in short time spans like equities do. Most investors prefer the more complex and tastier flavors of stocks, leaving bonds to play a backup role in their portfolios.

The Motley Fool's CAPS investing service is great way for investors to work together to beat the market -- and maybe get famous while they're at it. Among its features, CAPS lets users blog about their picks, investing strategy, market view, yesterday's lunch, or whatever floats their boat.

Here's a little tip most Wall Street-types would prefer you not know: The recipe for great returns in the stock market is startlingly simple.

Over a one-week period in mid-July, the S&P 500 advanced by more than 1% on a single day -- three times. I learned about this via a post by the folks at Bespoke Investment Group, at seekingalpha.com. They mused that while it may seem like an unusual occurrence, it's really not much of one. During the past year's market slide, it has happened at least several times. Their cautionary conclusion? Don't assume that this means the market is turning around. It has done this before, only to resume sliding.

Let's get this out of the way from the get-go: There are plenty of ways to make $1.1 million. But if you're not about to sign on as spokesperson for an energy drink or are not willing to put a felony on your record, some ways may not be accessible to you.

OK, so this article may not change your life -- but it may well change your investing behaviors.

That should change (for the better) the size of your brokerage accounts, which could allow for an early retirement or an Ivy League education for your kids -- which, of course, will change your life. So get comfortable.

"Morningstar (Nasdaq: MORN) may be best known as the creator of its mutual fund rating systems, but there's much more to its business ... "

Sorry to disappoint you, Fools: However much you may imagine it, dividend checks don't make that ka-ching sound when they land in your account. There's no jackpot siren or shower of rainbow confetti, either.