Twenty Huge Investment Mistakes

September 20th, 2011 by admin Leave a reply »

Here is a list of investment mistakes made often!
1. Know why you are investing in a specific company or stock. Also know why you are in the stock market at all.

2. There will be ups and downs in the market, this is not a get rich quick scheme. Know what you are doing and why.

3. Look at the market for investment purposes. Not something to fiddle around with on the weekends.

4. Learn about the market, charting, stock value, dividends and companies before you enter the market.

5. Picking a stock and buying it just because.

6. Know where to invest and how much to invest. Specific sectors etc….

7. Investing in companies with poor balance sheets.

8. Buying stocks because, Kramer said so. Or anyone else for that matter and yes that includes stock forums like ours.

9. Investing in a stock based on rumor. (this often happens when penny stock trading which is another investment mistake)

10. Becoming a day trader, intraday trader, short term speculator.

11. Not researching before you make an investment decision, and I mean RESEARCH due your own due diligence.

12. Investing but not being ready to ride the market. Scared or nervous about volatile markets and panicking when the news is spreading fear.

13. Just investing in gold or oil or soy beans. Spread your investments around to various sectors.

14. Not buying and selling “good” stocks. Buying garbage stocks when the market is on fire.

15. Placing a lot of money in penny stocks or pink sheet stocks. There are many articles here on how to buy penny stocks. Please read them before ever getting involved or just avoid them altogether.

16. Investing in new unheard of businesses or companies that have yet to establish themselves and how they operate.

17. Borrowing money to invest. Nobody should be doing this ever!

18. Using just technical analysis to buy a stock. You should be using both fundamental and technical analysis before buying anything. If you have to use only 1, use fundamentals.

19. Not knowing when to exit an investment, both good ones and bad ones.

20. Start investing as soon as possible, its probably to late if your getting ready to retire in the morning.

Please share with other stock traders!
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1 comment

  1. Patrick says:

    Very good information will check back soon!