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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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