The Impatient Investor

The natives are getting restless -- and by natives we mean that peculiar genus known as the U.S. equity market investor. After a four-day rally petered out on Monday, the market managed to regain a toehold (albeit a shallow one) and lift itself back up Tuesday. Whether for good or for ill, anxious, impatient investors are acting as if the market’s subtle move upward may be a sign that we're entering a sustained rally.

To be sure, experts say it makes sense to maintain some exposure to equities so you can recoup your losses faster. Studies show that within six months of a new bull market, more than a quarter of the gains have already been booked. "Taking all of your current holdings and going to cash will certainly let you sleep better tonight," says Joe Clark, managing partner of Financial Enhancement Group, a financial planner in Anderson, Ind. "In reality, we have watched people not be able to sleep with the market volatility and then go to cash, to only watch them lose sleep in fear that it goes up without them."

But some investors are doing a lot more than just trying to stay in the game. In fact, they may be throwing high-risk Hail Mary passes hoping to win it all on one bet. From trading “triple-levered” ETFs to betting big on beaten down blue chips, some investors are breaking the cardinal rule of diversification. Experts say optimism is one thing and irrational exuberance is another, especially when this supposed rally seems tenuous at best. Here then is a look at some of the riskier bets impatient investors are making -- and ways to avoid the mistakes that may come with them.