Stock Trading Mistakes to Avoid

By www.ProfitableTradingTips.com

http://profitabletradingtips.com/profitable-trading-tips/stock-trading-mistakes-to-avoid
There is money to be made in trading
stocks and there are solid approaches
that a trader can use.

Unfortunately too many traders lose
money repeatedly from same mistakes.

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Here are some thoughts
from forbes about stock trading
mistakes to avoid.

First of all make sure that you are
entering the ticker symbol for the stock
that you want.

Too many people bought Tweeter
instead of Twitter at its IPO.

And, always, remember that stock
trading is not a trip to the casino in
which you keep doubling your bet in
hopes of that giant payoff to get you out
of debt.

Too many trading mistakes are self-
inflicted and come from not treating
the trading of stocks as the business
that it is.

Here are three specific suggestions
from Forbes about trading mistakes.

waiting for the perfect moment to
begin: investors who heeded the market
doomsday predictions for 2016 and
stayed out of or fled the market missed
out on the s&p 500 index’s 9.5%
increase for the year.

time in the market, not market timing,
is an investor’s best friend.

with a long-term time horizon you have
the ability to ride out the market’s
short-term ups and downs.

similarly, don’t be psyched out of buying
stocks because of your brokerage
account balance.

the same rules apply whether you have
$500, $5,000 or $50,000 to invest.

shopping for ticker symbols instead
of businesses: it’s easy to forget that
behind the blinking red and green three-
and four-letter combinations are actual
companies with bosses, balance sheets,
break rooms and business goals.

approaching stock picking with the
mindset of a business buyer helps you
focus on the characteristics that make a
company worthy of a place in your
portfolio.

forgoing a prenup: “what do you hope
to get out of this long term?”

may sound like an online dating
question.

but carefully crafting an answer may
prevent you from making most of the
stock trading mistakes on this list.

A wise old man of my acquaintance
once told me that there is no problem
in life that cannot be solved in a quiet
room with paper and pencil.

In today’s day and age you can say
computer but the point is the same.

Before buying or selling a stock write
down what role that stock plays in your
portfolio, what you expect or expected
of it, what you like or don’t like about
the company and you time horizon and
criteria for buying, holding and selling.

On our sister site, profitable investing
tips we wrote long ago about how to
start investing in stocks. The same
advice applies to trading.

how to start investing in the stock
market is to start with basic principles.

how much do you have to invest? a good
rule of thumb is that you should not
invest what you cannot afford to lose.

thus you need to be able to pay your
mortgage or your rent and make
payments on your car and other
expenses.

then you should have a couple of
months of expenses in the bank and
your credit cards paid off.

that is how to start investing in the
stock market.

while you are getting things in order you
will need to decide if you are investing
for the long term such as retirement or
you child’s college education or for a
short term of a few months or a year.

Don’t trade what you cannot afford to
lose and when you have made money in
stocks take a little off the table because
you do not have a gain until you have
taken a gain.

Stock Trading Mistakes to Avoid

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Stock Trading Mistakes to Avoid