Lanka Financial Market

Thursday, November 10, 2011

Common Investors Mistakes


Below we have listed a few common investor mistakes.Try to avoid making these mistakes with your investments.

◆ Falling in love with a position.

◆ Buying the stock right, but forgetting to sell it right.

◆ Not having a game plan for investing.


◆ Buying stocks that are extended.

◆ Buying a stock that is trending down, thinking that it is cheap, or a value. Often, these types of stocks become an even better value because they continue to fall in price. Ideally, it is best to stick to stocks that are in an overall uptrend, trading above their bullish support line and exhibiting positive relative strength.These are the stocks that are in demand and should be considered for purchase.

◆ Acting on poor advice, tips, and financial media hype.

◆ Getting emotional and not being able to stay objective.

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