Novice Investors Unaware of Pitfalls

“Club Sticks Together Through Thick, Thin” [Money Make-Over, Nov. 27] is a perfect example of what happened to many novice investors over the last couple of years. Seduced by the record-breaking bull market and insufficient knowledge of the true risks, individuals participated like never before in history, only to now be confronted with what may be a once-in-a-generation bear. Having taught a series of investment classes for the Monrovia Adult School for a few years now, I have come to the conclusion that the vast majority of individual investors are ill prepared for the complexities of investing. It is like the man who familiarizes himself with all the rules of poker only to sit down at a table for the first time with a couple of guys named “Tex” and “Slim”--we know who will end up on the short end, as many investors are finding out now.

Greg Chang

Mount Washington