Common Mistakes Most Investors Make
-
From
"How To Make Money In Stocks" by William J. O'Neil
- Most investors never get past the starting gate because they do not use
good selection criteria ...
- A good way to ensure miserable results is to buy on the way down...
- An even worse habit is to average down in your buying ...
- The public loves to buy cheap stocks selling at low prices per
share ...
- First-time speculators want to make a killing in the market; they want
too much, too fast, without doing the necessary study and preparation
...
- Mainstream America delights in buying on tips, rumors, stories,
...
- Investors buy second-rate stocks because of dividends or low price-earning
ratios...
- People buy company names they are familiar with, names they know
...
- Most investors are not able to find good information and advice
...
- Over 98% of the masses are afraid to buy a stock that is beginning to
go into new high ground, pricewise ...
- The majority of unskilled investors stubbornly hold onto their losses
when the losses are small and reasonable ...
- In a similar vein, investors cash in small, easy-to-take profits
and hold their losses...
- Individual investors worry too much about taxes and commissions;
your key objective should be to first make a net profit...
- The multitude speculates in options too much because they think
it is a way to get rich quick...
- Novice investors like to put price limits on their buy-and-sell
orders ...
- Some investors have trouble making decisions to buy or sell ...
- Most investors cannot look at stocks objectively. They are always
hoping and having favorites, and they rely on their hopes and personal opinions
rather than paying attention to the opinion of the marketplace, which is
more frequently right...
- Investors are usually influenced by things that are not really crucial, such as stock splits, increased dividends, news announcements, and brokerage firm recommendations...
If you hunger to become a winning investor, read the above items over
very carefully several times and be totally honest with yourself. How
many of the habits mentioned above describe your investment beliefs and
practices?
Poor principles and poor methods will yield poor results. Sound principles
and sound methods will, in time, create sound results.
William J. O'Neil's advice to you is: Have courage, be positive, and don't
ever give up. Great opportunities occur every year in America. Get yourself
prepared and go for it. You'll find that little acorns can grow into giant
oaks. Anything is possible with persistence and hard work. It can be done,
and your own determination to succeed is the most important element.