5. Have a lot of
research and plans how the stock price will increase but don’t have any plan
how to manage loss.
No stock investor can claim that they have a 100%
probability of earning in all of their stock pick. The realistic skill that all successful stock
investor and stock trader have is to be right most of the time or to earn big
and lose the least possible percentage of their stock portfolio.
6. Businessmen consider stock market
investing would only require good
business skills, professionals consider stock market investing would
only need the best professional practice.
Stock market investing is investing. You will need the investing skills of knowing
the fundamental analysis and technical analysis. Being a great businessmen or a
highly skilled professional does not guarantee you will become a successful
stock investor or stock trader.
Having the discipline of a businessmen and your profession
would help you to better learn the stock market investing skills but you need
to understand that you will need stock investing and stock trading skills if
you want to be successful in stock market.
- Stock investing or stock trading the money you can’t lose or worst you don’t own.
Historically you will have a high probability of earning in
stock market if you can stay invested for more than 10 years but if you are
trading money you can’t lose or you don’t own, how can you be invested for the
long term.
The usual loosing cycle here is that you will need to sell
early at a loss to return your borrowed money and your own money will absorbed all the loss to return
the borrowed capital with interest. You
lose money in stock market and lose money in paying the interest you can’t earn.
After few months or years the stock price will go up so you tell yourself that
this is the best time to borrow again but when you bought the stock, the stock
price started to go down again and you need to sell early at a loss so you can
still return the borrowed capital.
- Not following your own plan or system that works.
Do what works and don’t practice anything that does not earn
you anything. If you have a good system
or plan why would a successful stock investor or stock trader would do another
plan or system?
The investing skills is just the 1st part of how
to be successful in stock market. The
emotional and physical aspect of investing is also a big factor that will
affect you stock investing decisions.
Even a highly skilled stock expert still experience a period of doing a lot of mistakes but they know how to manage
loss and earn more what they loss.
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