Nick Proffitt has a nice overview of classic Trading Mistakes.
– Letting small losses turn into large losses.
– Refusing to take a loss at all.
– 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.
– Excessive tape watching.
– Being undercapitalized.
– Letting the tax tail wag the stock dog.
– Relying on gurus.
– Thinking this market stuff is easy.
– Thinking rather than looking.
That’s just the list; its fully explained at Decision Point.
Why is common sense so uncommon?
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.