These are the common mistakes you must avoid:
- You stubbornly holding onto losses when they are small: You don’t want to take a loss, so you wait and you hope, until your loss gets so large it costs you dearly. This is by far the number one mistake most investors make.
- You buy a declining stock because you think it is a bargain and cheap. it will lead to miserable result
- You add more shares to averaging down in price rather than up. You are putting good money after bad. This strategy can produce serious losses.
- You buy stocks based on tips, rumors, split announcements, and news, stories, advisory recommendations, or opinions you hear from market experts on TV. (Chart pattern is the most reliable vehicle. If a stock breakouts with higher volume it tells me every thing. Your opinion, my opinion or anyone's opinion is meaningless. Study Fundamental analysis is a waste of time)
- Buying old names you are familiar with.
- You do not use charts and are afraid to buy stocks that are going into new high in price. Most investors think that a stock making a new high price seems too high, but your feelings and opinions are far less accurate than the market.
- You get out of a winning trade too early by cashing it small, while holding the losers
- You Worry too much about taxes and commissions.
- You speculate heavily in options or futures because you think it is a way to get rich quick.
About my swing trading
