How Not To Buy Stocks Do These And You Are Sure To Lose Money

How Not To Buy Stocks Do These And You Are Sure To Lose Money 1

How Not To Buy Stocks – Do These And You Are Sure To Lose Money
If only I​ had read an​ article like this before I​ dived into the​ world of​ stock investing .​
I​ must say,​ three years ago I​ knew absolutely nothing about how to​ buy stocks .​
Of course,​ through that experience I​ learned several ways on​ how to​ buy stocks and lose money.
Buy stocks without doing research – I​ joined a​ discount brokerage and went shopping for stocks right away .​
I​ had no clue what I​ was supposed to​ look for so I​ just picked random names I​ liked and bought a​ few shares here and there of​ each.
I must admit,​ I​ thought I​ was doing quite well .​
I​ mean,​ some of​ the​ stocks I​ picked ended up doing alright,​ but the​ majority of​ them when no where fast .​
So if​ you want to​ make sure you fail at​ buying stocks,​ skip the​ research.
Don't Consider the​ Trading Fees – Learning how to​ buy stocks the​ wrong way is​ easy when you don't consider trading fees .​
I​ must admit,​ when I​ joined the​ discount brokerage I​ was really excited about their $4 trades .​
What I​ forgot to​ calculate was the​ math.
I was investing an​ average of​ $10 per stock when I​ bought them .​
Shelling out $4 for a​ $10 piece of​ stock meant I​ was losing 40% right up front each time .​
When I​ decided to​ sell the​ stock I​ had to​ pay another $15 just to​ sell! You can see where I​ am going with this,​ it​ can turn into quite a​ fiasco.
Don't Diversify – the​ surefire method for how to​ buy stocks the​ wrong way is​ to​ buy a​ single stock and nothing else .​
Throw all your nest egg into one company .​
I​ mean,​ so many people do it,​ especially in​ their companies at​ work .​
What is​ in​ your company 401K?
Having all your eggs in​ one basket sets you up for quite a​ roller coaster,​ except there is​ no safety rails on​ this ride .​
You could easily lose everything.
Buy High and Sell Low – the​ market is​ fickle so if​ you want to​ set yourself up for failure,​ go with the​ masses .​
I​ admit,​ it​ is​ very tempting to​ see a​ stock going higher and higher and yet.. .​
higher again.
This makes people want to​ buy it​ more,​ increasing its demand and running the​ price up even higher .​
This is​ great right?
Sure,​ it​ can be sometimes,​ but if​ the​ stock is​ overvalued you are really learning how to​ buy stock the​ wrong way with this purchase.
To buy stocks the​ wrong way,​ sell the​ stock as​ soon as​ the​ price dips some .​
Even if​ the​ company is​ solid .​
Following the​ herd is​ a​ great way to​ go down the​ wrong path.
Hold On To a​ Losing Stock To Try and Break Even - I​ bought a​ popular stock for $63 a​ share,​ not too long later it​ dropped into the​ $40 range.
The research showed the​ company was not doing so well,​ but I​ wanted to​ at​ least get my purchase price back .​
I​ mean,​ it​ is​ sure to​ bounce back up right?
Fast forward a​ few weeks and it​ was in​ the​ $30 range .​
Dang,​ I​ should have sold it​ at​ $40 when I​ had the​ chance .​
Well,​ I​ am going to​ at​ least wait until it​ gets back into the​ $40 range before I​ sell it.
Fast forward.. .​
it​ is​ below $20 a​ share now .​
Keeping a​ stock when both the​ price and the​ company are going downhill is​ a​ sure way to​ learn how to​ buy stocks the​ wrong way.
Avoid Learning the​ Right Ways - If you really want to​ learn how to​ buy stocks the​ wrong way through the​ school of​ hard knocks,​ make sure not to​ discover the​ right ways.
However,​ if​ after reading this article you decide you want to​ learn how to​ make some money with stocks the​ right way visit

How Not To Buy Stocks Do These And You Are Sure To Lose Money

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