Thursday, August 14, 2014
Making Mistakes in buying
I was lazying after 11am ... busy will be 8.45am to 9.30am ... then, relax ... read some news-biz. Now is almost 12.30pm, market is closing for lunch ... and at times, I will just go off for lunch.
I will want to write about many-many mistakes, blunders, errors, trading-sins, bad decisions ... and such. I have it all, I think. Hmm ... how is one to be experienced if we never do mistakes or afraid of being wrong? How is one to improve if we so much afraid of losing money? What is trading without losing? And the excitement of having good trades?
That is trading. Being a trader, one needs to accept the up-down(not good for weak heart? haha). Keep the emotion in control ... it is an easier said than done issue for newbies.
Mistakes/Blunders : In buying
1. Buying after reading a broker report recommending BUY call with high target price and believing it in.
2. Buying after heard tips given by a 'friend' or someone else, as if it could spread to our level... many would have accumulated ... to distribute to late-comers?
3. Buying without an exiting plan ... don't know where to cut-loss, where to take profit. After sell, afraid it will shoot higher, then regret.
4. Buying it high in the morning when market bullish ... as it retraces lower later ...
5. Buying for the shake of buying ... fingers itchy ma, must buy something, then only feel that we are IN.
6. Buying due to good news such as good quarter-report etc etc
7. Buying when in mood to buy (LOL) such as it is your birthday, you feel good-luck, so you buy.
8. Buying when you have 'instinct' that a stock will shoot higher ... well, if u r an experienced person, it is ok but not for newbies.
9. Buying too many counters ... until no money in hands to buy anymore. Over-diversified as everything in market also like.
10. Buying because the stock price is low(cheap la)
Buying ... or bye-ing?
Time for lunch ... and classes.