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Heading into the New Year, there’s a mix of fear and optimism. The urge to limit losses, however, can be an invitation for blunders. Here are some things to avoid in 2010:

Looking backward, not forward: Sticking with a recessionary game plan and playing it safe isn’t going to rebuild wealth. There’s been a knee-jerk pullback from equities (with outflows of $32 billion in 2009), and a push into safer securities such as Treasuries and municipal bonds, despite thin yields. U.S. bond funds are closing in on $370 billion of inflows for the year.

There are some glimmers of optimism and a strategic revision may be developing.

A survey by Charles Schwab(SCHW Quote) earlier this month found a growing bullish sentiment among active traders. Half of its respondents claimed a positive outlook for the market in the next six months, up from 34% in July; 63% plan to increase trading in the next six months. About 55% are holding 30% or less of their long-term portfolio in cash or cash investments.

Don’t fear the stock market. The benchmark S&P 500, which fell by half from peak to trough, has risen 23% this year. Big companies like Apple(AAPL Quote), Google(GOOG Quote) and Pepsi(PEP Quote) have weathered the storm and moved onward and upward. Sitting on the sidelines too long meant missing out on the stock-market rebound that could have gotten investors halfway back to where they were.

 

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