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.
- 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.
- 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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