7 Deadly Trading / Investing Sins

Re: 7 Deadly Sins of Trading / Investing

Postby HengHeng » Tue Aug 04, 2009 2:16 pm

1. Not cutting losses. ( timing wrong means wrong , very hard to make money without this )

2. Firmly believeing that you are right and the market is wrong. ( you think i think who confirm , last fool theory )

3. Ignorance / Arrogance ( act like know everything but you don't , my suggestion only play stuff that you completely understand )

4. Liquidity ( make sure that the stuff you are buying are stuff that can be sold easily )

5. Over relyance on certain systems i.e "t.a" or "f.a" thus leading to brain lock if things don't go accordingly. ( more often linked to the first problem )

6. Fear ( you know what i mean )

7. Greed ( got profit if possible let it run , don't let a profit become a loss )
Beh Ki Jiu Lou , Beh lou Jiu Ki lor < Newton's law of gravity , but what don't might not come back

In the game of poker , "if you've been in the game 30mins and you don't know who the patsy is, you are the patsy
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Re: 7 Deadly Sins of Trading / Investing

Postby Aspellian » Tue Aug 04, 2009 9:46 pm

hope when you should fear
fear when you should hope

above 2 statements is probably the starting point of lots of other SINS!!!

Markets are never wrong, opinions are - dun go against the market!!

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DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
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Re: 7 Deadly Sins of Trading / Investing

Postby kennynah » Wed Aug 05, 2009 4:37 am

Aspellian wrote:hope when you should fear
fear when you should hope

above 2 statements is probably the starting point of lots of other SINS!!!

Markets are never wrong, opinions are - dun go against the market!!


awhhhhhh..... you can do better than this.....
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Re: 7 Deadly Sins of Trading / Investing

Postby winston » Wed Aug 05, 2009 6:29 am

Greed, Fear, Arrogance and Ignorance ...
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: 7 Deadly Sins of Trading / Investing

Postby winston » Wed Aug 05, 2009 8:50 am

Does not want to listen to opinions that does not agree with our perception of things. I guess it's sturborness or a close mind ..
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: 7 Deadly Sins of Trading / Investing

Postby iam802 » Wed Aug 05, 2009 9:21 am

Position Sizing. (Have this been mention yet?)

Eg. Wrong sizing. One large position that can wipe out the rest of the gains in other areas. This is a double edged sword.

I have been hit by this a few times.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
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Re: 7 Deadly Sins of Trading / Investing

Postby Aspellian » Wed Aug 05, 2009 9:23 am

kennynah wrote:
Aspellian wrote:hope when you should fear
fear when you should hope

above 2 statements is probably the starting point of lots of other SINS!!!

Markets are never wrong, opinions are - dun go against the market!!


awhhhhhh..... you can do better than this.....


hahaha... the above summarises what i went through last year! these investment sins are more than enough; more than what my pocket can take!!! :lol:
lucky i dun have more sins, hahaha!!! still can be saved by grace! ;)

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
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Re: 7 Deadly Sins of Trading / Investing

Postby kennynah » Wed Aug 12, 2009 12:29 pm

it's a great pleasure for me to summarise all the inputs so graciously suggested by many in this forum...

after this listing... i would like this list to be voted so that only 7 remaining "sins" remain... this list will then become the "official" 7 Deadly Trading/Investing Sins of Investideas Huatopedia...that is if Winston agrees....

as to how this can be voted, if at all this function is available in this forum platform, remains a question to be answered by our dearest new admin...iam802....wahahahahaha.... thanks in advance ... add work to you...

but i guess... this is my only contribution, as a gift to usher in our new forum...INVESTIDEAS Huatopedia...


listed here below in no order of ranking or priority
(by the way, i have to paraphrase for some suggestions are longer than elephant's brother..so pardon me, if it is not exactly your intended "sin")
***************

Wrong Position Sizing
Stubbornly Closed Minded
Greed, Fear, Arrogance, Ignorance
Hope when you should Fear / Fear when you should Hope
Not Cutting Losses
Trading Illiquid Assets
Over Reliance on Singular Trading System
Fully Invested All The Time
Not Letting Profits Run
Being Inflexible to Trading/Investing Style
Commit All Time, Attention and Life to Trading/Investing
Falling in Love with Your Investment
Not Executing Trade Against Better Judgement
Accepting Popular Quotes at Face Value
Trusting Analysts' Reports
Trading/Investing without Understanding the Implications of News/Data
Trading/Investing based on Wrong Impression
Trading/Investing using Excessive Leverage
Not Accepting Small Losses
Allowing Profits to Turn into Losses
Trading/Investing Without a Plan
Not Monitoring Mental Stops
Tweaking Initial Exits due to Emotions
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Re: 7 Deadly Sins of Trading / Investing

Postby iam802 » Wed Aug 12, 2009 2:06 pm

I can help create a POLL.

But, needs to keep the above choices to 10.

If you can help trim it, I will be glad to take care of the rest.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
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Re: 12/8! Vote Your - 7 Deadly Trading / Investing Sins

Postby Aspellian » Wed Aug 12, 2009 2:06 pm

some are similar, so i group them together for easy reference.

***************

Wrong Position Sizing
Stubbornly Closed Minded
Greed, Fear, Arrogance, Ignorance
Hope when you should Fear / Fear when you should Hope
Not Cutting Losses /Not Accepting Small Losses /Allowing Profits to Turn into Losses
Not Monitoring Mental Stops / Tweaking Initial Exits due to Emotions
Trading Illiquid Assets
Over Reliance on Singular Trading System
Fully Invested All The Time
Not Letting Profits Run
Being Inflexible to Trading/Investing Style
Commit All Time, Attention and Life to Trading/Investing
Falling in Love with Your Investment
Not Executing Trade Against Better Judgement
Accepting Popular Quotes at Face Value
Trusting Analysts' Reports
Trading/Investing without Understanding the Implications of News/Data
Trading/Investing based on Wrong Impression
Trading/Investing using Excessive Leverage
Trading/Investing Without a Plan

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
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