7 Biggest Mistakes Investors Make HTML version
Seven: Not expecting to make
mistakes – and not fixing them
Even the best investors make mistakes in the market. Maybe you buy a
stock that doesn’t really have the kind of fundamental and technical
strength that normally precedes a big uptrend. Maybe you bought a stock
without noticing that it was due to report earnings the next day. Then bam!
The report is disappointing, and the stock slumps 15% in one fell swoop.
Or maybe industry events or economic events unfold that neither you nor
anyone else could have anticipated, and that sends the stock lower.
No investor is that amazing superhuman who’s never wrong in the market!
Read “Reminiscences of a Stock Operator,” the semi-fictionalized
biographer of Jesse Livermore, a phenomenal investor who lived in the
early part of the 20th century. In that book, and in Livermore’s own how-to
guide, “How to Trade in Stocks,” he recounts examples of money-losing
But what made Livermore different from most, and what makes the best
investors different today, is willingness to learn from mistakes. Livermore
didn’t blame the market, or the guy who have him a bad tip, or the
company itself for being bad. Instead, he accepted responsibility when he
broke his own rule and bought a stock based on a tip, something he had
vowed never to do. It’s not about beating yourself up – it’s about
acknowledging the mistakes, understanding how you made them, and
taking steps so you don’t repeat them.
Seven Biggest Mistakes Investors Make