- We think that we can become millionaires in a few months.
- We limit our profits but do not limit the losses.
- We take many days and do detailed analysis of all the options available to buy a fridge or TV of Rs 10-20,000 but take only few seconds to decide about buying stocks worth lakhs based on a tip/rumour.
- We buy a stock just because it has fallen 50-60% from its peak.
- We think we can buy stocks in the morning & sell in the evening thus making profits without making any investment (possible but not as easy as it sounds!).
- When the market goes down, we sell our ‘winners’ thinking that we can buy them at lower price later.
- We do not sell the ‘losers’ thinking that sooner or later they will recover.
- We sell a stock but when it goes up 10% or 20% then buy it again thinking that it will go higher.
- We buy stocks which have gone up 100 times in last few years thinking that it can never go down.
- We see/hear a big news about a company in the morning and are ready to buy at whatever price we get even if the news is already factored in the price for last few days.
- We think that futures & options is the shortest way to becoming a millionaire.
- We sell a good stock in our portfolio just because it has not appreciated as much as the stock in our friend’s portfolio and buy that stock ourselves.
- We sell a great stock just because 1 quarter earnings are not good.
- We buy a stock because an analyst recommended it on TV and sell it in next few days because another analyst said so.
- We try to minimize our tax liability first before maximizing profits.
- We take all the credit ourselves when the stocks in our portfolio rise but blame the government, stock exchanges, SEBI and all the big players in the market when they are down.
- We average out stocks after they go down a little thinking that we have made a profit or we average out our bad investments after they have fallen a lot thinking that we will at least recover our initial investment.(We should average out only good investments when they have fallen at least 30-40% and we are sure that future is bright)
Learning of the week:
There are no mistakes made only lessons learnt in life as well as stock markets. But we have an option of learning from other’s mistakes.
Articles of the week (Please copy and paste the URL in browser):
- Tips for small investors to ease their nightmares
http://indiainfoline.com/news/innernews.asp?storyId=62008&lmn=1
- Seven things to remember in bear run
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