Nick Proffitt has a nice overview of classic Trading Mistakes.
-- Letting small losses turn into large losses.
-- Refusing to take a loss at all.
-- Bottom fishing/Catching falling knives.
-- Averaging down.
-- Shorting bulls and buying bears.
-- Confusing the company with its stock.
-- Falling in love with a "story."
-- Following the leader.
-- Buying IPOs.
-- Finding the Holy Grail.
-- Excessive tape watching.
-- Being undercapitalized.
-- Letting the tax tail wag the stock dog.
-- Relying on gurus.
-- Thinking this market stuff is easy.
-- Thinking rather than looking.
That's just the list; its fully explained at Decision Point.
Why is common sense so uncommon?
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» Classic Trading Mistakes (from The Big Picture) from Financial Rounds
Barry Ritholtz at The Big Picture has a nice summary list of Classic Trading Mistakes: -- Letting small losses turn into large ones. -- Refusing to take a loss at all. -- Overbetting. -- Bottom fishing/Catching falling knives. -- Averaging down.... [Read More]
Tracked on May 28, 2005 1:42:23 PM
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