Common mistakes by a trader

Many people invest without adequate learning about the investment tactics or the different options of investment and without setting a goal what they really want to achieve over the long term.

These kinds of investors often react to the short-term movements of the markets to buy “hot stocks” at exactly the wrong time, and subsequently end up never getting ahead.

Here are some of these so-called “market-chasing” behaviors:

1) No strategy
2) Buying individual stocks instead of creating a diversified portfolio
3) Investing in stocks instead of companies
4) Buying at high
5) Selling at low
6) Rapid turnover of investments
7) Acting on general tips
8) Paying too much in fees and commissions
9) Too great a focus on tax avoidance
10) Unrealistic expectations