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Worst Trading Mistakes |
Don't Go Down With The Ship.
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Bull market vs.
the Genius: Don't
confuse a bull market with smart investing. If you were lucky enough
to be in the right place at the right time you would have made money
without any effort. We sometimes feel smart when the market is going
up, so we're tempted to trade more often and take on riskier
positions.
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Following
A Television Analyst's Advice: Analysts
are paid just to analyze a company. They are not traders. I have
seen them make outrageous price targets on stocks, and come up wrong
80% of the time. The most notable was YAHOO at $390, just before
earnings. After earnings, which Yahoo blew away estimates, they
dropped 100+ Points, and then continued to spiral downward to $25.
How many investors lost money on that Television Analyst's Opinion?
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Buying
On The News: This is yet
another amateur mistake. Many times, the good news is already
known to investors. Have you heard the saying, buy the rumor,
sell the news? Professional traders love to control the little
investor when they trade on news.
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Not
knowing When To Take A Loss: How
many times do traders hold onto a losing stock and justify their
decision by saying it's will come back, they always do. Oh,
really. I say dump it, and use our StockSwap™ feature to buy a
different stock that has the potential to make your money back for
you.
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Not
Knowing When To Take A Profit: This is almost as bad as not knowing when to take a loss - perhaps
worse. I have watched winning positions turn into losers very quickly.
Without discipline, your trade can turn into a huge loss.
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Not Profiting
During A Bear Market: Very few traders really know good strategies
for trading when the market declines. Most traders have never seen a
bear market until now. Stocks fall faster than they rise, so shorting
stocks and buying put options is a great way to make money.
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Trading
On Old News, Or Holding Into Earnings: As soon as a company publishes a report on its operations, that News
is Old News. The stock market always looks to the future, never the
present. Professional Traders never hold going into
earnings...Never. You can't use Old News, or hold going into
earnings to make short-term trades. You will lose.
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Not
Following The Trend: The trend
is your friend. How many traders fought the market after the internet
bubble burst? The trend was down which meant the buy and hold strategy
would no longer work. Follow the trend, when the trend reverses
course, then change your strategy. When you trade with
LittleNaNY.com, we create our own trend.
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Over-Trading:
Amateur Investors have a tendency to buy and sell way too much.
It is way more profitable to trade one stock, once a month with a
Network than trading 5 stocks hoping for a least one of those stocks
to hit big. Plus, who wants to trade in and out of a stock for a
half point? We trade stocks that we move 2 or more points, and then
get out. That's the way the professionals do it, so, that's the
way we do it.
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Emotional
Trading: Emotions do NOT
belong in your portfolio. Speculation, Fundamentals, and
Research do. Time will make a great investment grow, not hoping
and praying. Professional Traders are never clouded with
negative emotions, such as fear. They remain cool, calm, and
collected, because they buy the company, not the stock.
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Letting
Greed Control Your Trades: How many investors turned into instant millionaires during the
internet bubble, only to let greed take it all back? How many
investors would be happy to have just a 1/3 of that money back?
Never get too greedy. Remember this saying, I tell it to all my
members, "God helps those who help themselves, take too much, and
God help you."
The Stock Market is a
heartless, and disloyal playing field intended to fool most investors most
of the time. A place where the newest amateurs will be taken for a
brutal ride by those who know the rules. Stocks are basically
finance companies that borrow money from you, (when you invest or
speculate in them). If they are good companies, then they want their
share price to go higher so your investment can help them finance their
acquisitions with less dilution of shares. If they're not,
then it's like someone that keeps borrowing money from you and never
repaying it? Plain and simple, that someone would be an
irresponsible and selfish person. Exactly what a market manipulator
is.
LittleNaNY's goal is to ensure that investors
understand how the game is played. The reason I have built one of
the Largest and Most Powerful Network of Investors on the internet is to level that playing
field. The truth is, Wall Street has lied and
cheated you for too long. When I'm done, there will be no reason for
anyone ever to lose again. Hey Wall Street, looks to me like the
tables have turned.
As
Always Good Luck, God Bless,
And Tell Your Broker That LittleNaNY Said So, They All Know Me.
LittleNaNY
The Network
That Moves The Market.™
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