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 team Happy for other posters to contribute to this list. Whilst not all mistakes can be eliminated, reducing the controllable mistakes must improve your overall performance of any trader/investor. Please feel free to contribute on the thread. Regards Buffett PS: Mind must not be working as I sure I have made more than 28 mistakes over a very long time.
