7 Biggest Mistakes Investors Make HTML version
Three: Cluttering up your
investing with layers of
<Sigh.> You know the saying: Keep It Simple Stupid.
OK, I’m actually not calling you stupid (after all, you’re reading this, so
there’s no way you’re stupid)!
But there are a lot of people out there who seem to think they sound
smarter by throwing around a lot of fancy-sounding investing jargon. A lot
of that jargon centers around the “technicals,” or, put simply, the price and
volume movements of a stock.
But for people who like to impress others, it’s fun to toss around terms like
Bollinger bands, stochastics, MACD, the Relative Strength Index, and other
Maybe you believe a speaker sounds intelligent and sophisticated by using
these terms. But the record really speaks for itself: Top growth investors of
the past century, including Jesse Livermore and Nicolas Darvas didn’t use
any more indicators than absolutely necessary. Fancier and more
sophisticated isn’t necessarily better, when it comes to getting top-notch
Here’s the key to utilizing only the tools you need: Treat stock charts as
something that can help you identify the best times to buy and sell. Sounds
simple, right? Good news – it is simple!
But people who like to seem sophisticated treat chart-reading as an end all
unto itself, rather than as a tool to help you recognize buy points and sell
Seven Biggest Mistakes Investors Make