Whether you are a newbie or a veteran investor, there are five common stock market investing mistakes that you are most likely making. Without further ado:

1) Selling profitable stocks too early and trading losers too late – one of the biggest investing mistakes.

ALSO READ: 10 Famous Investment Quotes and What We Can Learn From Them

While this is a natural tendency, this strategy is really always the wrong one. Cut your losses early and allow your winners to continue generating profit.

2) Becoming obsessed with short-term market prices, volatility and trends.

While day traders must follow short-term volatility, most investors should not dwell on these issues. You risk losing your focus on safe stocks, investment portfolio diversification, and long-term market trends. 

common investing mistakes


3) Making too many trades.

Another of many popular investing mistakes. Unless the excitement of trading is irresistible, you should follow the advice of most stock investing experts and limit your trades to those that advance your strategy. 

4) Investing too much limited capital in initial trades.

Stock market investing basics stress that managing your capital (investment funds) is critical to long-term stock portfolio success. 

5) Fighting the fact that “when you’re hot, you’re hot; and when you’re not, you’re not:”

The stock market game remains a galaxy of trends, moods, ebb, and flow. Like golf, poker, or any other activity, there are some days that you simply shouldn’t play. Fight the tendency to simply play harder—at these times, you’ll typically just lose more money.

It’s important to have a plan when investing. Of course, it is easier to list these five rules than it is to really follow them. These mistakes are made by experienced investors almost as often as they are by first time investors. However, there is no doubt that investors who are aware of these common mistakes are at a higher advantage and are more likely to meet their financial goals.

To learn more, head over to Wall Street Survivor.