We all want to make money and then more money. Because of this desire to increase our income we set out to create ways to earn money outside of our normal jobs. Because real estate investing or starting a business requires a lot more to get up and running, many people turn to paper assets.
Stop and think about it for a moment. If you can just scalp $50 net a day out of the stock market you have picked up an extra $1,000 per month. Many stocks will move S$0.10 to $1.00 within a days trading so you don't even have to be totally right, just catch the move and scalp some money. Sounds easy right? But as you may have well experienced it is a lot easier to say then to do. Because this sounds to easy many have jumped in with their new idea and have been clobbered by the market.
Why isn't this as easy as it looks? Because the market is always right. This is a hard lesson to learn, but the market is never wrong. People are wrong. People will trust indicators to lead them when indicators are lagging. Markets can sometimes be confused, indecisive and even fickle, but the market is still right. Because the market is always right then if we are going to take on the market we have to realize that our battle is not with the market. Our battle is with ourselves. Everyone makes mistakes, but knowing what can go wrong puts you one step ahead. Here are some common mistakes investors make. How many of them apply to you?
Common Mistake #1 - Entering A Trade Without A Plan...
Common Mistake #2 - Entering A Trade Without Understanding Your Risk...
Common Mistake #3 - Breaking the rules of your plan...
Common Mistake #4 - Falling In Love with a Stock or Company...
Common Mistake #5 - Failure to Use or Stick with a Stop Loss...
Common Mistake #6 - Increasing Position Size to Make Up for Past Losses...
Common Mistake #7 - Failure to Learn From Past Mistakes...
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