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The easiest and number one way to lose buying stocks

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Stocks fell Friday in excess of 1% before reversing but did not get back to even ground. Some soverign debt issues were said to cause some concerns. S&P dropped French debt a notch and said other were under review for drops. This is in contrast with what Fitch, anther rating agency said last week, in that they would not receive downgrades.

Initasl unemployment claims rose to 399,000 whch was unexpected after last weeks great report. Last week was at the 375,000 level. So they went up.

Voltility is expected to continue with stocks adn trading or deciding when to invest has become a m ine field. Step in the wrong place and "kaboom". Many traders, especially those who have not taken steps to educate themselves, make the bad mistake of buying a stock when it is downtrending. If they are aware of the chart they may be trying to catch a reversal which usually ahs poor odds. Or they are just investing in a tip they got somewheres.

Simply put the number one reason 80% of new traders pay the remaining 20% who are aware of this is they do not trade with the stocks and markets trend.

Traders and investors that do not factor in a stocks trend before buying almost certainly guarantees failure over time. Being unaware of this will not bring mercy in the markets.

New partipants in the markets often try to pick the tops (it has gone up too far), and bottoms, (it can't go down any more). They employ taking tips from various hot sheets and gurus but they have no filters or plan on how they will trade them.

They may as well be stepping on a boat in water with a swift current and not pay any attention if that current is going in the direction they want to go.

Most new traders that do this will not discover their mistakes unless they take a concerted effort to find out why and educate themselves. Here are several articles that will help you trade better or start better. The article titled, How to Determine the Trend deals with this issue.

Trade with a plan

(Click on link above for free trading tips on this site)

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