5 Mistakes You’re Making in the Stock Market


5 mistakes you are making in the Stock Market

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1.You’re trading too much

The only one that will win for sure if you trade over and over is your broker with the fees you’re generating. The stock market is a no strike game. There is nothing forcing you into action.  If you have a sound investment process you’re purchasing stakes in businesses not just a stock that is trading on the stock market and your appraisal of that business should be a long term process.

The trading game is a game filled with those that have better and quicker information than you.  The way to beat them is to have a longer time horizon and to be more patient and less reactive.

In the long run stocks and the market correspond to earnings and GDP growth, in the short term you are at the mercy of the market.

If you’re too easily convinced you need to switch then you most likely made an mistake in your initial investment process. As a starting point, examine your stock selection process with some of our Free Investment Checklists from the greats: Investment ChecklistBruce Berkowitz Investment ChecklistCharlie Munger’s Investing ChecklistPhilip Fisher’s 15 Points.

Ray Dalio