13 Scary Mistakes Stock Investor Do To Lose Money In Stock Market Part 2of 3

     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.

7.  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.

8. 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 1^st 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.

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.

2. 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.

3. 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.