Nick Proffitt has a nice overview of classic 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 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? 

Category: Trading

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One Response to “Trading Mistakes”

  1. Classic Trading Mistakes (from The Big Picture)

    Barry Ritholtz at The Big Picture has a nice summary list of Classic Trading Mistakes:
    – Letting small losses turn into large ones.
    – Refusing to take a loss at all.
    – Overbetting.
    – Bottom fishing/Catching falling knives.
    – Averaging down….