Introduction
I have hard time to accept the fact that investment is such challenge task to work on. I get together a few people on wechat group so we can share tips and have chance to coach each other. I do like to talk about 10 common mistakes I see and then I like to write my thoughts as well.
10 common mistakes
I think that most important is to be able to time the market; learn how to cope with fear and greedy when I make decision as an investor. In terms of timing the market, I am thinking about March 20, SPX 2200 is bottom. Even though I was afraid at that time, since I read the article to talk about SPX 1200, second crash in short future.
- Learn some basics of finance first; For example, I did over 12 months personal finance research, and then moved to investment on stock market;
- Learn how to invest as a passive investor. For example, I learn how to invest as a passive investor, mainly on ETFs, set up a portfolio to diversify and seek long term return;
- Common mistakes of passive investors are lack of knowledge of market, how to read the news, time the market to get in and get out; It takes time to know how to play Yahoo finance, marketbeat, and all other software products.
- Gambling is such intensive and hard to resist; I do not think that it is healthy for long term; Get together very often, talk about stress, and how to overcome it;
- It is hard to measure risk very well. The market is extremely hard to predict; Better work on long term investment. But most of friends are working on short term trading;
- Lack of confidence, and scare to invest in right time, right amount;
- Trade too frequent, too often; act on news articles or any top-trend news;
- A few of them like to learn management of transactions, good at bet on big amount in short range;
- I have problems to handle the stress of down swing, and then I should find ways to talk and learn common challenges as an investor.
- Keep honest and be open to other Chinese in community; Try to reach out and learn from each other; People are shy away from collaboration, meetings together to design a purchase, evaluate down turn risk, and exit strategies.
Stock market is such a great place for top talent people, 1%, or general ordinary people to play as a passive investor. By statistics, day trader or short term trader can not beat the market. Losing money is common for people working on over six months.
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