The 10 dumbest things investors say to advisors.
1} When my investment gets back up to what I paid, get me out.
This is surely a big mistake. That stock has absolutely no idea that you’re waiting for it to go up so that you can sell.
2}The stock is selling at $3.00 a share. How much can I lose?
$3 multiplied by the number of shares.
Oh yeah, dont forget to add in commission.
3} I want to buy shares of XYZ Company. Three years ago, they were selling at $60; now the stock selling at $5.
You can actually make a lot of money investing in good companies when their stocks are out of favor (go to dictionary look up: Warren Buffett). You cannot make money buying junk just because its cheap.
(Same dictionary lookup cheap junk).
If this creates confusion please see item 2.
4} The stock is up 10 % this past month.
Its too high, I cant buy it now.
Have you ever heard of a long-term uptrend? Just because you missed the bottom doesnt mean you missed the boat.
Ive heard that the shortest time measurable by man is the time between when its too soon to buy a stock and when its too late.