Seven Stock Blunders

Along the lines of our earlier post is this nice round up of investing/trading errors via Glenn Curtis:

Ignorance may be bliss, but not knowing why your stocks are failing and money is disappearing from your pockets is a long way from paradise:

1. Ignoring Catalysts

2. Catching the Falling Knife

3. Failing to Consider Macroeconomic Variables

4. Forgetting About Dilution

5. Not Recognizing Seasonal Fluctuations

6. Missing Sector Trends

7. Avoiding Technical Trends

Glenn goes into details on each of these in the full article.

Seven Forehead-Slapping Stock Blunders
Glenn Curtis

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What's been said:

Discussions found on the web:
  1. leftback commented on Aug 3

    9. Watching CNBC with the sound on.

  2. MarkTX commented on Aug 3

    10. Assuming you are on a level playing field.

  3. Deelio commented on Aug 3

    11. Belief that you are operating in “free markets”.

  4. Troy commented on Aug 3

    12a. Setting stops to tight and losing a swing thereby
    12b. Setting stops to loose and getting reamed on a reversal

  5. lurker commented on Aug 3

    13. Misspelling “too”

  6. player commented on Aug 3

    14. Looking for trading tips in the comments section.

  7. VennData commented on Aug 3

    15. An MBA has been put in charge of the firm / government entity.

  8. vozworth commented on Aug 3

    16. believing your own bullshit

  9. Bruce commented on Aug 3

    17. Thinking if I don’t get in now, I will miss most of the upside.
    18. Thinking since I have already lost so much money, that getting out now won’t accomplish much.
    19. Following my brain instead of my gut.
    20. Understanding that it is not just the other guy who can be greedy, I can be that guy too. And almost always, that winds up painful.

    Bruce in Tennessee

  10. sam commented on Aug 4

    21. Monkey see, monkey do. Believing the technical analysis scam is actually a valid trading strategy. Warren Buffett did it so it must work. Oops. Warren Buffett didn’t do it. Did any rich guy do it? no? Oh, nevermind.

  11. ECONOMISTA NON GRATA commented on Aug 4

    #1 – Watching too much CNBC, especially, Dudlow and Company.


  12. 8 Stock Portfolio commented on Aug 5

    I think I just broke most of those rules. I decided to pick up a basket of 8 beaten down stocks and see where I end up. The worse of them is down 98%.

    An exercise in catching falling knives…

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