Common Mistakes made in the Stock Market |
| Written by Ben | |||
| Thursday, 06 December 2007 | |||
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Here are some common mistakes made in the stock market. I hope readers will take note and avoid them:- Holding on to a falling stock hoping to get out even or a small gain. (In most cases, the hope becomes hopeless). Buying in a downtrend or compounding your error by averaging down indiscreetly. Buying penny stocks without knowing their intrinsic value Buying on tips and rumors or tagging long with friends Buying a share because of its name Not knowing how to select good solid companies Not knowing what is good advice Not using charts and being afraid to buy stocks that are trending up Taking profits too quickly Speculating more than one can afford to lose Overestimating one’s own ability (Don’t be the praying mantis thinking it can block a car) Approaching the market wrongly. Trying to make the maximum amount of money in the least possible time. Not realizing that investing intelligently is the right approach. Not learning from one’s mistakes and that of others.. Fortunes are made and fortunes are lost in the stock market. If you want to be a winner, be serious about it. Don’t go in for fun, but for the fund. Happy investing.         
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