Latest list of trading mistakes. Thanks for contributions to the list. Glad I am not the only one who has missed the opening (mistake No.37). It appears Mohnish Pabrai, fund manager & author of "The Dhandho Investor" has come up with about 70 categories of mistakes. Updated List: I have established a thread on Day Trading called Trading Mistakes. Its primarily aim is to: 1. Identify the most common mistakes made by traders 2. Once a list of mistakes has been identified establishing checklists to reduce these mistakes. I will start the list with a few common mistakes: 1. Ignoring fundamental analysis 2. Ignoring technical analysis 3. Inappropriate position sizing 4. Failing to monitor position 5. Inexperienced or incompetent management 6. Ignoring general market conditions 7. Ignoring relevant industry conditions 8. Following the herd 9. Following tips 10. Becoming involved in a fad 11. Failure to see whether company has funds to achieve goals 12. Dishonest or greedy management 13. Failure to compare to compertitors 14. Failure to Act when a decision is required 15. Greed 16. Inappropriate timeframes 17. Failure to do own analysis/research. 18. Overdue influence from financial adviser/broker. 16. Fear 18. Lack of discipline when buying or selling 19. Lack of review system 20. Lack of performance measures 21. Inadequate resources (equipment/software/recording) 22. Failure to read sector rotation. 23. Lack of understanding of company's key driving forces. 24. Imbalance in portfolio 25. Failure to use time effectively i.e. overposting on HC 26. Overtrading. 27. Lack of patience. 28. Believing management 29. Lack of cash reserves 30. Inappropriate trading structure 31. Failure to provide for income tax when due 32. Failure to have an exit plan 33. Believing history will repeat itself. i.e. historic prices. 34. Setting realistic Investment returns 35. Records not up to date i.e. current portfolio/bookkeeping for tax 36. Execution Errors /need for appropriate order journal & software 37. Not being prepared for market opening 38. Believing that you must be in the market all the time 39. Hope trades 40. Failure to define exit target prior to trade. 41. Failure to exit at targets 42. Failure to check recent announcements. 43. Failure to review possible downside before entry. 44. Failure to regular review stocks held. 45. Failure to back up data & research 46. Believing Newspaper/newsletters/media reports Regards Buffett
