Watching the cooking channel and eating in restaurants twice a week does not a chef

make. Ditto for investing.

You can do all the research in the world, speak to the best advisors and read all
the books, but you will still make mistakes when you first start investing.
Everything is theoretical until you start applying it yourself. Mistakes are
inevitable, the key is to minimize them.

That said, people have been investing for decades. And with all those years of
experience, certain trends appear, certain mistakes repeat themselves. This article
will show you some of the most common mistakes investors make, and how you can
avoid them.
Mistake # 1: The House always wins.

Many investors forget to include the cost of broker commissions when they calculate
fees for getting in AND getting out of trades. This has some serious implications
for the average investor, as they might think that they are making a profit, when
in fact, after commissions, they have a loss. Every broker has different
commissions and different rules. Make sure you find out ALL fees before you invest.
Wallstreetsurvivor takes a (virtual) $9.99 commission to keep things authentic. You
can see this on the trade page
Mistake # 2: Humpty Dumpty sat on a wall�

One of the first rules of investing is to diversify. This means reducing your risk
by investing in different companies and/or industries. If you invest in one
company and it turns out to be a loser, your entire portfolio will suffer.
Alternatively, if you have a variety of stocks and one of them loses, the rest of
your portfolio will help balance you out. Granted, the highs will be lower, but the
lows will be higher. Bottom line: Don�t put all your eggs in one basket, because if
that egg breaks all your left with is yoke. If you have only one stock in your
portfolio, buy a few more!
Mistake # 3: Bulls make money, bears make money�pigs get slaughtered.

What does this mean? The fact is, the market swings and it always will. There will
be unavoidable ups and downs. Bulls think the markets will rise, and make money on
the ups. Bears think the markets will drop and make money on the downs. Pigs are
greedy and try to make money by playing both sides. I think you can guess what
happens to them! Bottom line: it�s ok to be a bear, it�s ok to be a bull � but
never be a pig. (Apologies to Miss Piggy)
Mistake # 4: Don�t lose sight of the prize

Turbulence is not just reserved for airplanes. You will see plenty of volatility
(swings) in the market and the trick is not to let that affect you. It is important
to recognize that owning stocks is like riding a roller-coaster; there will be ups
but there will also be downs. This is an almost universal truth. If you have done
your research and made up your mind about which stocks suit you and your portfolio,
ride out the waves.
Mistake # 5: Playing on the news

If you make a trade based on what you heard on the morning news, guess what �it�s
too late. There are bigger fish in the sea who have already absorbed the news and
made the trades to affect the price. Basically, by the time you read it, the market
has already adjusted. So be aware of your timing.
Mistake # 6: You are not the oracle�of Omaha

Do not become over-confident in yourself or the market. Respect it and ride it but
don�t believe that you have the power to tame it. Invest only in what you know (if
you know stocks, invest in stocks�don�t go for options and futures or swaps).
And the Final Mistake: Thinking you can�t make mistakes
Stuff happens, right? We all make mistakes. Unavoidable. That said, there are good
mistakes and bad mistakes. Acknowledging the ones we make helps us from repeating
them. Keep your eyes open constantly, recognize and listen to what you�re doing
wrong, and make efforts to change it. Practice makes perfect!

Experience is the name everyone gives to their mistakes � Oscar Wilde