What's the biggest mistake you ever made in the market?
I'll go first -- I once purchased shares of a company that got 95% of their business from a single customer. Now, to me, it seemed like these two would be joined at the hip for years to come...if anything, I thought the customer would eventually just buy the company.
Instead, this company lost its main customer and its stock crashed...that's something I'll NEVER do again (won't even talk about how much money I lost).
Answers
369 points
chidog47 answered one year ago …
Not keeping an eye on something. The worse thing from my experience is not check up on an investment. I once purchased a stock and left it alone. Didn't read any news about it and the next thing I know the stock imploded and I was left with pennies.
Read more from chidog47 flag as abuse great answer
2172 points
ChaosNantuko answered one year ago …
Going against my system and selling my portfolio hedge when my portfolio was primarily options. Right before august :|
Read more from ChaosNantuko flag as abuse great answer
427 points
larryat36 answered one year ago …
Trying to trade Options without the needed education. I was doing well picking stocks, so how har could it be to just trade options using the same scenario"WRONG". Found the right stock played the option, stock went up, option didn't NOW WHAT. tried the same thing again, same results {hard headed I am]. So back to the drawing board Whats all this Delta, Vega etc sounded like Greek to me. But after learning the meaning and application of those Greeks and applying them as they should be things began to change.After much more study and education at no small cost I found that I could trade options properlyAfter that cosyly lesson I learned that there are no shortcuts to learning trading properly.And the learning goes on.
Read more from larryat36 flag as abuse great answer
2709 points
Oldman answered one year ago …
Not taking profits...and not putting cash in when portfolio positions were down...Happens repeatedly...I guess I'm just not good money maker, compared to everyone else.
Read more from Oldman flag as abuse great answer202 points
Lobo answered one year ago …
I suppose all traders have heard the warnings: "Don't fall in love with a stock," "Don't catch a falling knife" and beware those dreaded "dead cat bounces."
I had been watching a stock, thinking of buying because it seemed fundamentally sound, good body, pretty face, etc., and before my watching eyes it suddenly fell about 60% in a ridiculously short span of time. I couldn't detect any change in the fundamentals, nor could I believe my good fortune. It was very sweet of this adorable stock to give me such a special buying opportunity! Surely after such a drop the downside risk would be non-existent! I watched it dance a little here and there and then it took a little leap. I bought. I would follow it to the moon in blissful estacy.
That did it. After I bought she quit dancing; no more smiles and winks. It fell a bit more ...but that was fine. Not much downside risk now! I would buy more. No, wise man that I am, I decided to proceed with prudent caution. I sold a put at a strike price just a little below the market price. I would have the nice premium to protect me just in case, and if the stock were to slip a tad more I would still have a good buy for stock I wanted anyway. And if the price went on up, which I was sure it would do, my good premium would counter my higher purchase price.
Then, I had to be gone from home a few days and had the comforting satisfaction that my portfolio was in fine shape; maybe when I returned home I could even close that put position at a slight profit. So I'm away, busy as the dickens, yet at peace with the world. After the second day away during a quiet moment or two I felt compelled to find a computer, just curious I suppose. I looked at my account...but the stupid borrowed computer apparently had given me someone else's account. I knew it was worth more than shown! And I didn't have that much of that stock I wanted so badly! On a horrible day in March, 2008, when I wasn't looking my beloved stock ran away (don't fall in love with a stock) and fell another 40-50%! Some lucky investor had bought my put only a few days before he put his stock to me at a now really high price. It's probably the put buyer's favorite barroom story: He made 400-500% in 3 or 4 days. He tells it so often it bores people around him; it makes me a little ill.
As for me, I sat at the computer and looked down at the blood running from my hand (never, never catch a fallling knife) and caught a glimpse of an evil smile, made permanent by rigormortis, on the face of the dead cat that had bounced into my lap. (beware all such critters) Hopefully, I'll never forget these old sayings...that really do mean something!
