Invest To Financial Freedom - 3 Common Mistakes You Should Avoid In Stocks Trading
The Best Way to Understand this site is subscribe the RSS or Email Updates.
Every person who really invests their money before can tell you those investing mistakes that they made. So our job is learning from them. We must learn from their experience so we won’t repeat it in future.
Today, I’m going to share with you 3 common mistakes that we should avoid in stocks trading.
ÂÂ
Mistakes 1 : Invest in too many stocks
This is the most common mistake that many people made. Invest in too many stocks will reduce our concentration and we can not make any precious decision. So what I suggest is focus on certain category of stocks and choose 1 or 2 company to invest. From here, you must keep on learning and planning until one day you found your invest strategy. Your own money making formula in stocks market. At that time, you can implement your invest strategy in other stocks and make money.
ÂÂ
Mistakes 2 : Invest Shorterm instead of longterm
Another most common mistake that many people made. Every humans do have a psychology that wants to get rich quickly. This is why there are so many get rich quickly schemes appear in the market. In stocks market, because of this psychology, many people looks for shorterm investment and wish to make some big money from the market in the shortest time. According to some reports, longterm investment can easily brings to 5-7% of returns. However, most people give up this and look for those above 10% returns in shorterm investment. Shoterm investment can bring more profits to you, however, on the other side, it also can make you lost more money. So it is risky if you invest all your money in shorterm. What I suggest is invest more in longterm and invest partly in shorterm.
ÂÂ
Mistakes 3 : “What if…….†And “I should have……â€Â
Today, stock XYZ is at $0.50. “Should I buy this? What if I buy this buy the price drop? I should wait and seeâ€Â. The price jump to $0.80. “Oh, I should have bought at $0.50 and now I am in profit $0.30 per stockâ€Â. Do you have this experience before? Yes I have. The “what if†always block me from enter and exit the market at the right price and right time. And the “I shoud have†will make me regret and if the power is strong enough, I will enter and exit at a wrong point and lost money. Most of the time the “what if†and “I should have†always affect our decision making. This is our emotion problem. What we can do is Keep on investing and train our emotion. From my experience, if you did your research as much as possible, your confidence will be strong and can fight back the “what if†and “I should have†emotion.
Some Related Posts
Updates of this week - Carnival Of week 3/20/06 - 3/27/06Invest to Financial Freedom - Common Day Trading Mistakes25 Rules for Day Trading BeginnerCan't Find What You are Looking for? Try Google Search
 |
   
|
Comments
One Response to “Invest To Financial Freedom - 3 Common Mistakes You Should Avoid In Stocks Trading”
Leave a Reply
#1 is my problem — trying to work myself out of it over the next year or so.