| A majority of new traders in the stock market only | | | | stocks, your risk of losing money will be higher. By |
| look for hot stocks to buy. They think that if a lot of | | | | the way, this also applies to hot tips provided by |
| investors are putting money in a certain stock, there | | | | your friends. You will never know where your friends |
| must be something really good going on with the | | | | got their tip. So, if the tip is not reliable and you lose |
| issuing company, so there is a big possibility of | | | | money, your relationship with your friends could be |
| making huge profits. However, stock market trading | | | | affected. It would be better if you pick stocks based |
| is not that simple. Finding in-demand stocks is not the | | | | on the information that you gathered from your own |
| be-all and end-all of stock investing. To make sure | | | | technical analysis or from a unbiased stock picking |
| that your career as a stock investor is on the right | | | | service. |
| track, you should avoid the biggest mistakes that can | | | | Another important mistake to avoid is concentrating |
| be committed by greenhorn stock traders. Read on. | | | | all your efforts in one trade. Even if the stocks are |
| First off, do not follow the band wagon blindly. Even | | | | at the top of the list of hot stocks to buy issued by |
| if people in the media tell you what hot stocks to | | | | experts, it is still advisable to diversify your portfolio |
| buy, you should not immediately follow their lead or | | | | so your exposure to risks will be minimal. In fact, it |
| suggestion. You need to remember that you are not | | | | would be ideal not to risk more than 10% of your |
| the only one reading the business newspaper or | | | | account in one trade. |
| watching the stock investing show. This means that | | | | A lot of investors who follow tips on hot stocks to |
| a lot of people will be heading to the trading floor, | | | | buy from other people usually end up holding on to |
| buying the recommended stocks. Although people | | | | their investments even if big losses are already |
| from the news agency and financial television | | | | apparent. If you see your stocks slide, consider |
| programs know what they are talking about, you will | | | | offloading them at a certain level. Do not wait for |
| have a lot of competition in other traders and if you | | | | your losing stocks to pick up because it may never |
| do not know the perfect timing of buying and selling | | | | happen. |