Trading Mistakes

Nick Proffitt has a nice overview of classic Trading Mistakes.

— Letting small losses turn into large losses.
— Refusing to take a loss at all.
— Overbetting.
— 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.
— Overtrading.
— 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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  1. Financial Rounds commented on May 28

    Classic Trading Mistakes (from The Big Picture)

    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….

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