Six Taboos and Suggestions for Trading Stocks in A Bull Market

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Beginner's Guide To Stock Trading | Bankrate

    Many people are curious about the stock market and enter it with enthusiasm. However, they do not form good investment habits, which leads them to sometimes serious losses. To sum up, bad habits can be divided into the following types, and corresponding suggestions are given.

The first is being too hasty. They rush to buy stocks that have risen sharply without careful selection. They only worry that they will not be able to buy them because they have missed the opportunity, rather than considering whether they can actually make a profit. As a result, they may buy questionable stocks, or they may not buy at the right time, making it difficult for them to make a profit, or even get caught up in the strong stocks.
Action: Don't rush. There are plenty of opportunities in the stock market, but your discretionary funds are limited, so buy carefully.

The second is to follow a herd of cattle. These people are heavily influenced by habitual thinking. They believe that when the stock market goes up, they are sure to make profits, and when it goes down, they are sure to lose money. They are blinded by the price, and they don't see the downside when the stock market is going up and the upside when the stock market is going down.

Suggestion: Be calm, think well rounded, and consider the negatives in the pros, and vice versa.

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The third is stubbornly holding on to their shares. While owning stocks is a prerequisite for making a profit, it's what you own that really determines whether you can make a higher profit. Many people hold stocks that have fallen in price. Most of these stocks are unprofitable and not hot at the moment, so they can't avoid losses.
Suggestion: Distinguish the advantages and disadvantages of the stock, timely out of the stock deeply short market.

The fourth is to buy in bulk. It's kind of like a fund, where investors don't have a lot of money, but they have a lot of stocks in their account. Although they own a lot of stock, but the income is not objective. Even if you have two good stocks, you don't get much profit because you don't buy a lot of them. Because they own so many stocks, they can't think about all of them, they don't know exactly what they own, and it's hard to keep track of what's going on in the stock price.
Suggestion: Organize your stock holdings and keep a few high earners.

The fifth is short-sightedness. After years of falling prices, many investors become shortsighted. When they make a small profit, they sell stocks in a hurry, hoping the price will fall, only to find that estimates keep rising and high profits are far away.
Suggestion: Be calm, be confident, and improve your bullish thinking.

The sixth is to sell up and keep down. When the stock market is going up, some of the stocks investors hold are profitable but some are stuck. Investors, however, may decide to sell the profitable stocks and keep the stuck ones. In the end, the stuck stocks you keep stay low or fall, while the ones you sell continue to rise.
Suggestion: Keep the stocks that have done you well, and even if you sell the ones that are stuck low, the stronger the stronger. This gives you a chance to reorganize your holdings.

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WriterSeli