What not to do in the market

Deirdre Newman

Doug Fabian knows pitfalls and how to avoid them.

He works in the stock market and directs investors away from

financial hazards every Saturday as the host of a radio talk show on

KLSX-FM (97.1).

On Tuesday, the president of Fabian Wealth Strategies in

Huntington Beach taught seniors at Estancia High School about how to

lose money in the stock market. Fabian emphasized the negative so

they would know what to steer clear of if they start investing in the

future.

“The easiest thing is to lose money in the stock market,” Fabian

said. “It’s difficult to make money consistently over a long period

of time.”

Fabian should know. He admitted losing $35,000 in 1990 after

investing in options. He now prefers to invest in mutual funds.

Economics teacher Kent Williams invited Fabian to speak to his

seniors, who are currently immersed in a stock market project in his

class. Williams said Fabian’s appearance accomplished two goals:

piquing students interest in the stock market and illustrating

careers that students might not have considered.

Fabian, 46, started working with stocks when he went into the

investment business with his father in 1979.

“Within six months, I had fallen in love with the stock market and

then I fell in love with helping people invest,” Fabian said.

Fabian emphasized how times have changed since the ‘70s, when

employees depended on their company’s pension plans for their future

savings.

Now it’s up to individuals to control their own savings, and since

many dabble in the stock market, it’s important to know what not to

do, Fabian emphasized.

Those no-no’s include buying off a hot tip, betting all your money

on one stock and predicting that a certain type of stock, such as

technology, will do well and investing all your money in this field.

“Hundreds of people put all of their money in Internet stocks and

didn’t think about when they would sell and walked away with zip,”

Fabian said.

In addition to dispensing financial advice, Fabian encouraged the

seniors to consider continuing their education.

“All of you have some decisions to make,” Fabian said. “I

encourage you to go to college. It doesn’t ensure happiness or

riches, but it increases the odds.”

He also exhorted them to follow their passion.

“If you want to be successful, you have to love what you do and

don’t be afraid to change,” Fabian said. “That’s one of the great

opportunities of this country.”

Many of the students said they were impressed with Fabian’s

speech.

“It was good, entertaining. I learned a lot,” said Jess Hellmich,

16.