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4. Turn off CNBC
Investing success is all about seeing the big picture despite the market's noise. Daily financial media, on the other hand, are all about creating noise. It's their job to treat every blip in the Dow as if it had deep meaning, despite reams of research showing daily stock moves are random or, at best, ambiguous.

So shut off the TV . "I try to avoid absorbing news about day-to-day fluctuations in the Dow," says David Hirshleifer, professor of finance at the University of California-Irvine. "A drop might signal some bad news, but it also means that the news is now reflected in the lower prices."

Another tip? Take a walk around the block before making any major investment decisions. Once you've cooled down, see if your gut reaction still makes sense

NEXT: Read a good book

Last updated August 16 2008: 4:37 PM ET
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