Chapter 22
Ten Common Investing Mistakes and How to Avoid Them
IN THIS CHAPTER
Staying away from trying to find your own trends
Refraining from stock sales
Steering clear of investing in volatile stocks, stories, and sick sectors
Selling too soon and avoiding what works
Everyone makes mistakes when investing or trading in stocks. The key to success is to find out how to avoid them as much as possible. In this chapter we focus on ten common mistakes and discuss ways to avoid making them.
Trying to Fight the Market Instead of Following It
Some contrarian investors always look for the top of the market. Others always look for the bottom in the worst stocks. In some industry groups like commodity-related products, trading with the main trend is important but being fussy as weakness appears can be prudent. For the most part, it is much more important to decipher the most recent trend and try to stay with that trend.
Rarely is an overnight hold against the trend a worthwhile endeavor. The stock market has traditionally had long bullish periods and rather short bear periods. The bear ...
Get Stock Charts For Dummies now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
