October 29, 2010

Trading Mistakes


Letting small losses turn into large losses.
– Refusing to take a loss at all.
– Overbetting.
– Bottom fishing/Catching falling knives.
– Averaging down.
– Shorting bulls and buying bears.
– Confusing the company with its stock.
– Falling in love with a “story.”
– Following the leader.
– Buying IPOs.
– Finding the Holy Grail.
– Overtrading.
– Excessive tape watching.
– Being undercapitalized.
– Letting the tax tail wag the stock dog.
– Relying on Blue Channels and Website Analysts
– Thinking this market stuff is easy.
– Thinking rather than looking.

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