I now teach over 5,000 students how to profit consistently in the stock market, but time and again I see people making the same mistakes. If you want to thrive and be wealthy, don’t be guilty of these sins:
Mistake #1: Getting married to your stocks
- PHOTOS: Celebrities attend 'Avengers: Endgame' premiere in Los Angeles29 Pictures
- PHOTOS: This Pakistani waiter looks just like Peter Dinklage8 Pictures
Human beings long to be loved for long periods of time and that’s why so many of us go the route of marriage. Over the past 100 years the US stock market has risen dramatically so those who invested long-term and “got married” to their stocks have been rewarded handsomely.
But times change, nowadays many marriages end in divorce, many should end sooner than later and the US stock market does not reward long-term investors as it once did as exemplified by the lost decade 2000-2010 where most investors only broke even or endured losses.Don’t get married to your stocks; think of them more as teenage love affairs - passionate and most definitely fun, but not lifelong relationships.
Mistake #2: Not Accepting And Taking Losses
We are all wrong at various points in our lives, but we usually can cut our losses and move on instead of not acting and wallowing in self-pity. Especially in the stock market. Sadly, far too many people refuse to accept their financial losses and do everything they can to avoid dealing with their mistakes. They double up on their position, or even triple up, as the price goes against them, rationalizing that by dip-buying, they will eventually enjoy greater rewards when proven right.
But because most traders and investors lose in this game, adding to a losing position usually only adds to their pain in the end.Don’t put yourself in this situation; losses can be a very slippery slope and most big losses begin as small losses that can be cut quickly by admitting the mistake and moving on.
Mistake #3: Trusting Tips
Friends, family, co-workers: everyone loves speculating on stocks; it’s practically a national pastime! Unfortunately, academic studies show that tips and the majority of people who invest and trade based on their gut lose more times than they win and the odds of success are worse than going to casino.
Don’t give into the urge to gamble in the stock market. If you want to invest, buy quality blue-chip companies, and remember not to get married to them for life, and ignore speculative, longshot tips.
This week's picks:
1. I saw Kevin Costner’s latest bomb “Draft Day” and was thoroughly entertained by its juvenile attempts at plot twists during the movie’s mock draft.
2. SnapChat has expanded from simply photo-based messages to include “stories” which are experience montages shared by users during live events like EDC.
3. New iPhone 6 rumors say the new phone will be introduced in September and have more features than we’ll know what to do with.
What's up and what's down:
Ronaldo prevented the US men’s soccer team from winning against Portugal, but in his next game he scored the winning goal to beat Ghana & push the US into the next round.
US women’s goalkeeper Hope Solo got into trouble with the law AGAIN and Uruguay soccer star Luis Suarez bit an opponent AGAIN…lock these people up, they don’t learn!
Timothy Sykes is a millionaire stock trader and entrepreneur. Visit his site at TimothySykes.com.