In his book, Asset Allocation for Dummies, Jerry Miccolis, CFP®, identified the 10 most common asset allocation mistakes and the ways to avoid them.

1. Ignoring asset allocation in the first place. Theres a big difference between investing and speculating. Investing relies on asset allocation which is a methodical, top-down, scientific approach. It might be boring, Miccolis wrote. But asset allocation should be the centerpiece of your plan to fulfill your financial goals.

2. Believing that diversification is enough. Dont confuse asset allocation with diversification, he writes. Asset allocation requires that you be diversified.

3. Forgetting to rebalance. After you set your target asset allocation, its likely that you will have to buy and sell investments to bring your mix back to the target mix.

4. Not having a long-term plan. This is work, but its work that will pay off. You need to think about your goals and sources of income and plan for the next 10, 20 and 30 years; your risk tolerance; and your asset allocation. Whats more, you need to document and stick to your plan.

5. Indulging your emotions. Dont let your emotions get the best of you, he wrote. You may get lucky ever once in a while, but you cant count on emotion to produce the results you want over the long haul.

6. Paying too much attention to the financial media. Dont turn to the financial media for investment advice, Miccolis wrote. Instead, use the news to keep up on general trends.

7. Chasing performance. Dont chase the hot stock, fund, or sector, he wrote. Stick with your long-term investment plan, which is based on good, solid science, and rebalance regularly.

8. Thinking you can outsmart the market. Dont fall for active management or marketing timing, he wrote. Dont bet your financial future on dumb luck. Stick with informed asset allocation and rebalancing instead.

9. Ignoring taxes. Dont forget to take a long look at what youre losing in taxes, and what portion of that you could keep if you made a few tweaks to your portfolio, Miccolis wrote.

10. Disrespecting inflation. Wealth is only meaningful in terms of its purchasing power, Miccolis wrote. Make sure (within your tolerance for risk) that you have a portfolio that generates a healthy long-term expected return in excess of inflation.