Posts filed under “Trading”
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?