http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-mistakes-in-investing How to Avoid Rookie Mistakes in Investing With stocks at multiyear highs, many folks are contemplating getting back into the market. The stock market is up again and that tempts more and more people to become stock investors. Folks who bought when the market was low love this scenario. Late arriving investors pour their money into the market just as fundamental analysis of stocks tells the pros that it may be time to take a little profit or get out altogether. The second half of this scenario is that the market turns and falls. Newly arrived investors hang on in the belief that if the market was going up it will surely go up again. Finally, in despair, they pull out of the market, licking their wounds, just as long term stock investors see opportunities and buy low priced stocks with good margins of safety and intrinsic stock value. How to avoid rookie mistakes in investing is to do a little homework before jumping into the market. Take a long term view of stocks that you purchase. Decide when it will be smart to buy and when it will wise to hold and when it will be time to sell. Learn about calculating intrinsic value and identifying a margin of safety in a stock. Learn how to invest in such a way as to avoid letting fear and greed drive your decisions. Time, Risk, and Reward Short term stock gains are possible in volatile markets. So are stock losses. How to avoid rookie mistakes when investing in volatile markets is a four-fold task: • Learn the fundamentals that drive the stock you want to buy • Learn the trading skill of technical analysis so that you can read changes in market sentiment • Decide if you are a short term trader or a long term investor • Remember that many successful investors do not believe that you can reliably time the market and make profits again and again If you want to put away money for retirement and you are not interested in sitting at a trade station all day buying and selling, pick stocks with a good margin of safety and high intrinsic stock value. Consider dividend stocks that pay you quarterly and consider reinvesting these dividends. Pick stocks with a reliable rate of return and low risk. Remember the power of compound returns.

1. How to Avoid Rookie
Mistakes in Investing
By: www.ProfitableInvestingTips.com

2. With stocks at multiyear highs,
many folks are contemplating
getting back into the market. The
stock market is up again and that
tempts more and more people to
become stock investors.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

3. Folks who bought when the market
was low love this scenario. Late
arriving investors pour their money
into the market just as
fundamental analysis of stocks tells
the pros that it may be time to take
a little profit or get out altogether.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

4. The second half of this scenario is
that the market turns and falls.
Newly arrived investors hang on in
the belief that if the market was
going up it will surely go up again.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

5. Finally, in despair, they pull out of
the market, licking their wounds,
just as long term stock investors
see opportunities and buy low
priced stocks with good margins of
safety and intrinsic stock value.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

6. How to avoid rookie mistakes in
investing is to do a little homework
before jumping into the market.
Take a long term view of stocks
that you purchase.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

7. Decide when it will be smart to buy
and when it will wise to hold and
when it will be time to sell. Learn
about calculating intrinsic value
and identifying a margin of safety
in a stock.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

8. Learn how to invest in such a way
as to avoid letting fear and greed
drive your decisions.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

9. Time, Risk, and Reward
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

10. Short term stock gains are possible
in volatile markets. So are stock
losses. How to avoid rookie
mistakes when investing in volatile
markets is a four-fold task:
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

11. Learn the fundamentals that
drive the stock you want to buy
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

12. Learn the trading skill of
technical analysis so that you
can read changes in market
sentiment
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

13. Decide if you are a short term
trader or a long term investor
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

14. Remember that many successful
investors do not believe that
you can reliably time the
market and make profits again
and again
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

15. If you want to put away money for
retirement and you are not
interested in sitting at a trade
station all day buying and selling,
pick stocks with a good margin of
safety and high intrinsic stock
value.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

16. Consider dividend stocks that pay
you quarterly and consider
reinvesting these dividends. Pick
stocks with a reliable rate of return
and low risk. Remember the power
of compound returns.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

17. Do Your Own Homework
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

18. A useful exercise is to think about how
to invest $10,000. What do you want to
do with the money once your
investments have grown? How long
are you willing and able to wait? How
much risk are you willing to take? Do
you know about diversifying your
investment portfolio? What are
reasonable expectations when
investing in stocks?
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

19. How to avoid rookie mistakes
when investing starts with this
kind of thinking. You do not have
to run out and buy any stock as
soon as you have $10,000 to invest.
You can pick stocks as though you
bought them and watch how they
do.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

20. You can develop a process or
strategy for picking stocks,
watching them, and deciding when
to buy more and when to sell.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

21. How to avoid rookie mistakes
when investing is to learn to do
your own homework and not make
a habit of following the herd of
investment lemmings as it heads
for the investment cliff.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

22. Following the Numbers instead
of Succumbing to Fear or Greed
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

23. Far too many new investors buy in
moments of unfounded optimism
and sell in moments of mistaken
despair. Greed and fear are the
twin demons that destroy all too
many investors.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

24. How to avoid rookie mistakes in
investing is to buy and sell stocks
based upon sound analysis and
clear data.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

25. If you cannot say why you are
buying except that your friend says
it is a good deal you do not belong
in the stock market. If your friend
says that XYZ Corp. is a good bet
and your own fundamental
analysis tells you that he is correct
it is time to buy.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

26. Remember to always do your own
fundamental analysis and
remember that there is nothing
wrong with getting out of the
market when it does not make
sense.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing

27. Any number of long term
successful investors sat on the
sidelines when the Dot Com
bubble burst or in the run-up to
the 2008 market crash. You can too
and then invest again when prices
are low.
By: http://www.profitableinvestingtips.com/investing/how-to-avoid-rookie-
mistakes-in-investing