My 12 Best Tips To Avoid Mistakes On The Stock Market

So, Let’s Dive Right Into How to Avoid Mistakes On The Stock Market

  1. Be realistic
  2. Don’t feel like you’re married to your stocks
  3. Diversify your Portfolio (within reason)
  4. Diversify Your Approach
  5. Bad CEOs
  6. Don’t Ignore the Balance Sheets
  7. Big Dividend Yields don’t make a great stock
  8. Don’t sell too early
  9. Day trading
  10. Cryptocurrency
  11. Margin Trading
  12. Options

Be realistic

  • Don’t fall for the hype trains.
  • Just because you’re really optimistic about a company, doesn’t mean that it will succeed.
    Just because someone keeps talking or writing about how great that stock is, doesn’t guarantee that you’ll make a good return.
  • You care about numbers and concrete evidence. You care about balance sheets, income statements, reports, and CEO presentations. You care about past performance. You care about the target market and the products.
  • This is where your hope should come from in the first place.
  • If these things aren’t up to par, then you might be putting your hope in the wrong company.
  • If hope was all it took to make a company succeed, then all of us would be multi-billionaires.

Don’t feel like you’re married to your stocks

Diversify your Portfolio (within reason)

Diversify Your Approach

  • Growth, where you look for stocks that are rapidly growing.
  • Value stocks, where it’s all about the valuation, business models, and safety.
  • Dividend stocks, where you get decent dividends, but also stability.

Margin Trading

Options

Bad CEOs

Don’t Ignore the Balance Sheets

  • Oh, I love the products or services of this company.
  • I find the CEO inspirational.
  • Okay, time to give them my money.
  • What the company has in cash and cash equivalents.
  • Short and long-term investments
  • What it has in short and long-term debt.

Big Dividend Yields don’t make a great stock

Trading based on momentum is silly

Day trading

Cryptocurrency

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Antoaneta Tsocheva

Antoaneta Tsocheva

Entrepreneur and eco-friendly enthusiast. I’m on a green mission to clean up the way we live. Share the passion — follow my journey now! http://bit.ly/2FloQoQ