What is the most common investors mistake?

Discussion in 'Trading' started by Lloyd W. Coutee, Aug 11, 2015.

  1. Is frequency the only difference between investment and trade?
     
    #21     Aug 12, 2015
  2. Visaria

    Visaria

    You can define investment and trading how you like. Vic Sperandeo defines trading as positions intended to be kept intraday to days, speculation as days to weeks and investment as weeks to months/years.
     
    #22     Aug 12, 2015
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  3. JTrades

    JTrades

    One of the most common mistakes is investing 'late' in a hyped stock that is over-extended.

    The stock then retraces ~50%, the investor gets scared and sells, only to see the stock then recover and go on to make new highs.

    The initial idea was sound, but the timing was off.
     
    #23     Aug 12, 2015
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  4. i personally think beta has increased with all the growth in ETF investing... therefore i think it makes even more sense to buy when the vix spikes.. I'm not a stock investor though.. with all this fed stuff going on , deflation... I'm not sure i just wouldn't outrigh weight for a big correction even if it takes 2 years
     
    #24     Aug 12, 2015
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  5. Sig

    Sig

    What does that even mean "beta has increased with all the growth in ETF investing"? Beta is a measure of how much a strategies returns are correlated with the overall market. It doesn't make sense to say the market's beta is increasing, the market's beta by definition is always 1!
     
    #25     Aug 13, 2015
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  6. beta on stocks... not beta on the market.. and this is purely just speculation.. People buying more baskets would imply that all the constituents would have a higher beta..
     
    #26     Aug 13, 2015
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