Sure, we’ve all made exchange traded fund (ETF) investment mistakes that we regret. The point is to learn from your mistakes and approach new investment opportunities with a wiser, more cautious outlook. What you definitely don’t want to do is let your mistakes rule your current investment strategies.

For example, were you one among the masses that invested in dot-com stocks when they were all the rage and lost a ton of money? Sorry about your luck, but we hope that doesn’t mean you’re avoiding investing in the rapidly growing technology and energy arenas today. More specifically, here are a couple of lessons you should have learned, according to Gary Gordon of ETF Expert:

  1. Don’t put all your eggs in one basket. When a certain sector is booking, that isn’t the green light to throw all your money at it.
  2. If you already have a lot of money in one sector, diversify, diversify, diversify. If you’re hopping on the hot energies sector, you want to include the SPDR S&P 500 (SPY) and WisdomTree International Energy (DKA). Both of these ETFs are very broad and well-balanced.

Have a favorite "d’oh!" moment that taught you an invaluable ETF investment lesson? Leave a comment, and share them with us!

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.