6 Common Mistakes Stock Investors Make

| October 12, 2010 | 2 Comments

stock investing mistakes It is not easy for every trader to become a very good trader. For becoming a good trader you need to know the basics of trading with that you must also know the things that you must not do when trading. In my article I will tell you some major mistakes that investors make at the time of trading.

1. Lack Of Research

Most of the investors does not do any market research. Due to lack of market research investors bears heavy losses.

2. Penny Stocks

Penny stocks are cheap stocks. Sometimes it appears to be good investment but most of the time investors bears loss in penny stocks. If a 10 cents stock can jump to 20 cents it can also turn on the other side a 10 cents stock can to 3 cents.

3. Fear Of Loss

Investors feel fear at the time of investing. Because of fear investors get confused and in this confusion they misses out the good opportunities.

4. Blind Investment

Blind is the major mistake that most of the investors make. They just invest their money after a tip from a friend or a broker. They does not even bother to do research on which they are investing their money.

5. Selling Winners

Investors some time in a hurry sell their winner. A winner is that stock through which investor has made heavy profit.

6. Trading Rapidly

Sometimes investors start trading too often. This usually happens after they have made some profit, and they start to think of making even more, faster. To do that, they do not think much, and start investing without any further research.

Becoming a good investor is not hard. Rather, it will be easy if you are disciplined enough. So if you have ever dreamt of becoming a good investor, then you need to avoid the above mentioned mistakes.

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Category: Learn to Invest & Trade

About the Author ()

John Tan has been Vice President of BlueTrust Investments Corporation for 6 years since the mid-90’s. He has since moved on, to be a professional full-time trader.

Comments (2)

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  1. Vincs says:

    What are the key points to take note when doing a market reseach in a particular stock?
    Also with the company Annual Report,what are the fundamental area we need to look out?

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