Now as an investor, many people look for value stocks while others look for growth stocks. Whatever type of stock you choose, at the end of the day, it is your trading or what you may call investing discipline that is going to determine how much you make with your investment. What you need to know is what stocks to buy, what stocks to sell and when to do that. For this you need a set of good investing or trading rules and the discipline in you to implement those rules in practice!
Do you dream of discovering a killer stock that will make you rich? Or you’re not sure of how many stocks you should have in your portfolio. Or you buy one stock after another as if you are a stamp collector. Or you buy a stock without knowning exactly when you are going to sell it.
Now these are fatal mistakes that most small investor habitually make. What you need is a set of investing rules that tell you exactly what type of stocks to buy, what type of stocks to sell and when to do that. Let’ discuss the three critical investing mistakes committed by most of the small investors!
#1 Fatal Mistake: Falling in love with a stock! I ask you a question why do you buy a stock. Simple to make money many would say. Right but in reality you buy a stock to sell it. It doesn’t matter whether you bought the right stock at the right time. What matters is did you sell that stock at the right time.
Now most of the investor when they buy a stock start loving it and can’t think bad about it. But your stock is just a piece of paper that doesn’t care about you or your retirement savings. Loving a stock is going to break your heart one day when you will discover that your love has not been returned.
You should not be married to the stock. What you need is to sell that stock when the time is right. What this means is that the moment you buy a stock, you need to have an exit strategy that tells you when you are going to sell that stock.
#2 Stock Investing Fatal Mistake: You think that stock fundamentals matter a lot! This is another fatal mistake that many investors make when they buy a stock with strong fundamentals. They think that strong fundamentals are going to make the share price climb up. But in actual reality, strong fundamentals have nothing to do with a stock price. What moves the stock prices up or down is its demand in the market. As simple as that!
#3 Stock Investing Fatal Mistake: You waste your time searching for an undiscovered stock that can make you rich! Now to tell you the truth there is no undiscovered stock in the market. Wall Street has got thousands upon thousands of highly paid market analyst that do exactly that search for undiscovered stocks. As a small investors, you can’t beat them. Because it is there job and they are paid to do it daily!
Mr. Ahmad Hassam has done Masters from Harvard. Read this 49 page Quantum Swing Trading Report FREE! Turn $200 into $100K in just 3 months with this Penny Stock FREE Report that shows how to discover killer penny stocks!