Mistakes to avoid while investing in equities or stocks

Read an article that was impressive in its list of mistakes to avoid while investing in equities or stocks. I agree with all of the points but I also think one should take advantage of any short term volatility in the stock markets or the individual company stock price.

Here is the list of mistakes suggested to be avoided

Overconfidence - Don't be unrealistically optimistic

Over enthusiasm to trade - Not every ball should be hit (analogy to cricket)

Missing the benefits of compounding of capital - Learn from Einstein

Worrying about the market - But there is no answer to your favourite question - Suggests to worry about the companies you invest in rather than the market

Timing the market - Around 99% of investors will fail in this strategy

Selling in times of panic - You should be doing the opposite

Focusing on past performance - Its like driving forward while looking backwards

Diversifying too much will kill you - Investing is all about staying alive

Full article @ http://economictimes.indiatimes.com/Markets/News__Views/Analysis/Eight_mistakes_to_avoid_while_investing/articleshow/msid-2900010,curpg-1.cms

RK
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