InvestIdeas

Posted: **Mon Aug 03, 2009 2:15 pm**

INVESTIDEAS List of SEVEN DEADLY TRADING/INVESTING SINS

1. Greed, Fear, Arrogance, Ignorance

2. Not Cutting Loss

3. Not Letting Profits Run

4. Trading/Investing Without a Plan

5. Trading/Investing using Excessive Leverage

6. Fully Invested All The Time

7. Tweaking Initial Exits due to Emotions

I thought, it might be interesting for all of us to participate in gathering the 7 deadliest sins of trading/investing. We read from so many authors on this subject.

But I wanted for us to write based on personal trading/investing experiences... it is fine to state some of the common ones, better to exude some less published ones, if any...

My intention is to eventually rank them in order of toxicity, for some fun...

If enough people participate, I will collate the inputs and put them up for a final Vote...if there's such a function....and then, wah lah..

We will have a Huatopedia's 7 Deadly Trading/Investing Sins

admin : if you feel this needs to be relocated, please feel free to move this thread to the appropriate location..

let me start with a few

Trading/Investing Without a Plan
Not Monitoring Mental Stops
Tweaking Initial Exits due to Emotions

Posted: **Mon Aug 03, 2009 2:18 pm**

A couple from me

1. Not taking small losses and then finally has to take THE MOTHER OF ALL LOSSES..

2. Not taking profits when it hits your target, hankering around for more and watch the profit turn into a loss

Posted: **Mon Aug 03, 2009 2:22 pm**

- Pride - Refuse to cut loss - believe that initial research is right and need to be proven right
- Sloth - Buy based on rumours / without research
- Greed - excessive margin

Posted: **Mon Aug 03, 2009 2:29 pm**

Aspellian wrote:- Greed - excessive margin

asp : just to clarify...by the above, do you mean

excessive leveraging?

Posted: **Mon Aug 03, 2009 2:32 pm**

kennynah wrote:
Aspellian wrote:- Greed - excessive margin

asp : just to clarify...by the above, do you mean

excessive leveraging?

yes. leverage can be useful if used widely. but many a times it is a double-edged sword that cuts deeply. it can be only used if one cuts loss with discipline.

Posted: **Mon Aug 03, 2009 2:49 pm**

Dear All,

I think this thread should be in the "Other Investment Ideas" section rather than the "Misc." section. I will move this thread into that section later.

Some of the stuff in this thread overlaps with "School of Hard Knocks" or "Trader's Thread". If you like, I can merge this thread with either one of those threads. Kennynah - since you started this thread, please let me know what you like me to do.

Take care,
Winston

Posted: **Mon Aug 03, 2009 3:41 pm**

as i mentioned, please feel free to move this to anywhere you like... thanks...

Posted: **Mon Aug 03, 2009 3:46 pm**

On second thought, we can keep the title as it is.

From me, the deadly sins are:-
1) chasing a stock based on a reason that you understand eg. QDII Money coming to Spore to buy S-Chips, asset injection
2) buying a stock based on wrong impression eg. a lot of the S-Chips are very small companies and have very small market shares
3) trusting the Analysts. A lot of these guys / gals have not even been thru one economic cycle

Posted: **Mon Aug 03, 2009 4:46 pm**

winston wrote:On second thought, we can keep the title as it is.

From me, the deadly sins are:-
1) chasing a stock based on a reason that you understand eg. QDII Money coming to Spore to buy S-Chips, asset injection

Hi Winston do you mean "based on a reason you DON'T Understand"??

Posted: **Mon Aug 03, 2009 4:47 pm**

Another sin - Falling in LOVE with a stock, holding on till the end of time eg. riding Chartered from S$1 to S$17 to S$0.10 and now $2!! :lol:

InvestIdeas

7 Deadly Trading / Investing Sins

7 Deadly Trading / Investing Sins

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Re: 7 Deadly Sins of Trading / Investing