The Worst Mistakes Beginner Investors Make

March 12, 2019, By fierceinvestor,

You’d be surprised how many are making it near impossible to find success.

That’s because they try a million different things.  They get far too wrapped up with too many ideas.  And they lose track of one of the best ways to make money today.

Unbelievably, an astonishing nine out of every 10 investors fail because:

  1. Many don’t have good training, or guidance
  2. They’re not aware of risk, thinking the stock market is a “get rich” scheme
  3. They don’t think long-term.  They want instant gratification.
  4. They blindly follow the crowd, becoming one of the sheep
  5. They fail to trade without emotion.

That’s a great way to lose money.

We believe that if you really want to become a better investor then you need to be looking at where the smart money is heading.  You need to understand what is truly driving the markets and how you can take advantage of these moves as – and before – they hit the mainstream.

That’s how the long-term wealth can be found.

However, to truly achieve success, you must avoid the top mistakes we mentioned above.

Some of the other top mistakes include:

Top Mistake No. 1 – You Trade Illiquid Stocks

Only consider trading small cap stocks that have volume of at least 100,000 shares a day.  If you trade low volume, illiquid stocks, you may have a tough time getting out of the position, too.  If your stock only trades 2,000 shares a day, what happens when you need to sell 1,000 shares that you own?  You’re stuck.

Top Mistake No. 2 – You Don’t Have a Trading Plan

Do you know when to exit on an up or down move?  What stop losses or trailing stop losses do you have in place? Know these things, and set a plan so you won’t run into “crash and burn” scenarios as often as those with no plan.  Pros know when to just walk away from a trade. Remember, stocks don’t just move up.  They also come down.

Top Mistake No. 3 – Expectations are Far Too High

Inexperienced traders expect to quit their day job and make a fast-paced, hot lifestyle out of trading.  That’s not going to happen.  No one ever became a brain surgeon or rocket scientist first year in.  The same applies to trading.  If you make a mistake, learn from it.

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