Investing in the stock market can be a very lucrative endeavor if you take the time to learn how to do it the right way. Five Common Mistakes Most Investors Make

The good news for you is that most people do not take the time to learn how to do it right. So if you separate yourself from the masses and invest a little time and money in your financial education, you will always have an advantage. Here are five common mistakes most investors have made and how you can avoid making the same mistake:

Bug # 1 – Buy stocks just because they have a lower stock price. Investors have been doing this. They look at the stock at $ 10 per share. They say, "Wow, this stock's trading price is $ 10, and if I buy it now for $ 20 per share, I'll double my money so they buy the stock and then wonder why the stock is now trading at $ 5

Bug # 2 – Listen to their friends, coworkers and family tips. If your friends have the latest stock tips so are eligible to offer stock advice.

, Then why is he or she not a stockbroker, portfolio manager or managing his or her own portfolio full time? Doing your own research and investing based on a sound strategy is not based on someone's tips. Also, if you do not Caution, ask Martha Stewart what will happen to you from the following stock tips

Bug # 3 – Buy stock just because you like the company or brand name.So you like Dell's computer. The S & P 500 has outperformed Dell since September 2005. It has no business in your portfolio.You should buy stocks that have superior financial and technical performance, while the S & P 500 Index has been outperforming Dell since September 2005. You should buy stocks that have superior financial and technical performance,

Bug # 4 – Do not know how to reduce your losses.Never hold a stock, drop more than 10% as you buy it.If a stock from your belt For a more disciplined discipline, if the stock falls below 5%, sell half the stock, if the stock fell below 10%, the stock fell below 10%, there are some problems. You need to sell it, reduce your losses. Then sell half the stock. Too many investors hold losers and hope they can reach their previous prices, they will come back to the money

Bug # 5 – Investment based on the feeling against the rational investment principle. Of investors make their investment decisions based on their perceptions, rather than following the proven investment strategies and philosophy of the stock market.For decades, the formula has proven successful over and over again.To follow these guidelines should be your investment decision The Foundation, Not Your Feeling