Investment Sins That Will Wipe Out Your Capital

To be a successful investor, you should always treat your stock investments as a business venture.
1) You need to do before investing your own research.
Research the company you are planning to invest by:
a) analyzing the stock chart to determine that the stock is in a healthy uptrend
b) an analysis of financial statements to determine its profitability
c) and talk (such as customers, suppliers or employees) who knows the business with people.
2) You need to examine your investment strategies and test before trading. Your investment plan should include:
a) a target for profit taking.
b) and a cut loss price for a poor position to liquidate.
3) Not your stop loss orders when the market is trading near your cut loss levels canceled or changed.
If you're wrong, you lose and get out of position. Unfortunately, most investors tend to hold on to their losses and asked to take their profits.
4) Do not buy shares and leave them unattended.
You must love your portfolio to hold. On a regular basis
5) Do not over trade.
Know your risk appetite and trade with your extra money.
6) Do not listen to rumors the market.
Smart investors should look for large blocks of insider buying and selling.
7) Do not invest in a company that you do not understand.
If you are not sure, no trade. Guessing cost you money.
Michael Teo (MBA) is a professional trader and trainer. You can find more about his investment courses:

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