Saturday, 26 May 2018

10 Mistakes the Masses Make in the Markets

"If you want to be wrong then follow the masses". – Socrates

The majority of traders and investors lose money in the markets. So that means that the minority do things differently than the wrong things the majority do.

 What do the masses do wrong in the markets?

1. Holding losing positions after you have been proven wrong allowing a loss to grow bigger.

2. Cutting profits short and forfeit the opportunity of a huge win.

3. Being scared out of a good position during a minor move.

4. Listening to talking heads on financial news.

5. Buying and selling with no process.

6. Trying to predict what will happen instead of focusing on what is happening.

7. Fighting the trend instead of trading with it.

8. Trying to make back money on the same stock it was lost in.

9. Trading far too big.

10. Making too concentrated bets without diversification.

Quote for the day

"We live in a world which respects power above all things. Power, intelligently directed, can lead to more freedom. Unwisely directed, it can be a dreadful, destructive force." - Mary McLeod Bethune