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3 Deadly Stock Investing Mistakes
by Ahmad Hassam
Stock investing is considered to be one of the best ways to grow your
wealth. No doubt, stock investing made many people rich. You don't need to go
far, take a look at Warren Buffet. Over the years, he has been able to turn his
portfolio of a few hundred thousand into billions. How did he manage to do that?
Well, he had made a set of rules that would tell him what stocks to buy, what
stocks to sell and when to do that. He applied those rules consistently with a
lot of discipline and was able to multiply his portfolio hundred fold!
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 knowing 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.
Many investors when they buy a stock fall in love with it. Now, a stock is
just a piece of paper without any feelings for you. You can brag about your
stock but the stock doesn't care about you, it doesn't care about your
retirement savings. So, don't break your heart for a stock.
You do not need to marry a stock. When you buy a stock, you should know
exactly when you are going to sell it. In other words, when you buy a stock, you
should know at what price you are going to sell it or you should have a good
exit strategy if the it doesn't go the way you want.
#2 Fatal Mistake: Buying stocks with strong fundamentals! You can find
hundreds of stocks with strong fundamentals. But only a few will have their
share prices climbing. You can ask why? Because fundamentals have nothing to do
directly with the share prices. Only one think can make the stock price move up
or down; it's demand.
#3 Fatal Mistake: Searching for undiscovered stocks! This is the dream of
every small investor to discover a startup that has a stock worth pennies about
to breakout. Well, to tell you the truth, Wall Street has hundreds and even
thousands of highly paid analyst who do nothing except look for undiscovered
stocks!
Mr. Ahmad Hassam has done Masters from Harvard. Read
this 49 page Quantum
Swing Trading Report FREE! Read the story of Richard Samuels, a post
office mailman with a head injury and how he made a fortune with these Neutrino
Forex Signals!
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