1. Disbelief, fear, and lack of knowledge. New, unknown companies are the future super stocks.
2. P/E bias. Contrary to conventional wisdom, the best stocks rarely sell at low P/Es.
3. Not understanding that the real leaders start their big moves by selling near or at new prices highs, not near new lows or off a good amount from their highs. Investors should be buying stocks that are on the way up, just making new prices highs as they break out of a proper base or price consolidation area.
4. Selling too soon, either because they get shaken out or because they are too quick to take a profit, and psychologically having a hard time buying back a stock at a higher price if necessary. They also sell too late, letting a small loss turn into a devastating one by not cutting all their losses at 8%.
Monday, January 10, 2011
Key Reasons People Miss Buying Big Winning Stocks - "How to Make Money in Stocks"
Topic: Investment Strategies
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