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13 Scary Mistakes Stock Investor Do To Lose Money In Stock Market Part 1 of 3

     1.  Investing in stock market but really gambling your money in stock market. 

Gambling is simply not learning at least the basic skills of fundamental analysis and technical analysis.   The most common strategy of a loosing trader is stock trading based on hope that they bought the stock at  a low price and hoping again that it will go up.  If the stock price go down they will hope more that they at least recover their investment even at cost.

You want the excitement of gambling - having a high return using the least effort or no effort of understanding how the stock market really works.

  1. Choosing a stock that you have no idea how the company will make money.

You will be at the mercy of people who know the real value of the stock price.  Not knowing the value of the company that you are investing, you will more likely make decisions to lose money in this stock.

  1. Averaging Down -  Buying more shares of stock when the stock price is going down.

Unless you have a really good fundamental research or clear technical analysis , averaging down is unconsciously to prove to yourself that you did not buy a high priced stock.  Buying more shares of stock at a lower cost automatically lower your average stock price hoping the stock will increase but most likely there are a lot of reason why the stock is decreasing in price and may take years before the stock price will have an increasing  price trend.

4        Only concern or studying your country’s stock market performance.

It is also important that you know how international market performance would affect your country’s market performance.  There are times that your country’s market would be dependent on how the international market moves. 

Knowing how the international events would affect your country’s market performance will give you the necessary information that you need on how to manage your current stock portfolio.

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