WHAT ARE COMMON BEHAVIOURAL INVESTING MISTAKES?

COMMON BEHAVIOURAL MISTAKES WHILE INVESTING
·      When we are told “This stock will treble in 3 months and don’t ask me why”, we don’t ask why.
·      We believe all the fiction published in research reports even when they are suffixed with an “E” (estimate).
·      We believe that if an investment house is even discussing a company’s prospects with a positive bias, then it has bought into it.
·      We discuss stock prices when we should be discussing profits.
·      We discuss profits when we should be discussing the commodities that influence them.
·      We willingly buy stock in companies that we don’t buy debentures from.
·      We seldom have a perspective on future profit in the companies that we have invested in.
·      We buy into companies reporting higher profits ignoring that they could well have run up before the results were announced.
·      When a stock that we have invested in slips, we dismiss it as a technical correction; when it drops more, we say it is a great buying opportunity; after it has sunk, we promise to use a ‘stop loss’ next time.
·      When we see a great counter being overlooked for long, we begin to doubt our wisdom, make a sheepish exit and leave the fortune for someone else to encash.
·      We believe that when the market corrects 15%, it is going to correct 45% and when it rebounds 35%, it is headed for 75%.
·      We are over-researched in buying opportunities, but our official stance for selling is that we should not bother as we are invested for the long term.
·      We are always buying and selling equities based on someone else’s reference of what is cheap and expensive, seldom our own.
·      We confuse the fact that the smartest investors are more concerned with what is happening inside companies than what is happening in their stock prices.
·      We overlook the fact that investing is 99% strategy and 1% trading.
·      We hope, when it is time to act in the market.
·      We think brokers know best.
·      We seldom encash profits to raise the quality of our lives.
·      We encounter some of the biggest multibaggers in the newspapers under the column ‘research reports’ but flip the page to look at the quotations instead.
·      We buy more stock when the market climbs but flip from the front page to the back page when it melts.