Are you an investing sinner? The chances are good that if you are a beginning investor, the answer is yes. We enumerate the 7 most deadly sins for the beginner.

1. The 7 Deadly Sins of Beginning Investors http://www.beginning-investing.net

2. Who is a Beginning Investor? Learning to be a consistently successful investor is a skill that must be learned How long it takes depends on the time you are able to devote to it, but expect to be a ‘beginner’ for at least three years http://www.beginning-investing.net

3. Deadly Sin #1 - Underfunding Realize that losing trades are a normal part of trading Being underfunded can force the beginner to risk too much on each trade Three or four losses in a row can severely damage an underfunded account http://www.beginning-investing.net

4. Deadly Sin #2 - Overtrading The beginner hates to be in cash – she thinks she should be ‘trading’ all the time Patience is a virtue – it’s time, not timing Renowned investor Jessie Livermore said, “The biggest profits come from sitting, not trading“ http://www.beginning-investing.net

5. Deadly Sin #3 – Ignoring Stops It’s very hard to take a loss – it confirms that the trade was a ‘mistake’ It is easier to give the trade some ‘breathing room’ – a short-term swing trade becomes a long-term position trade Remember that you own the stock, not the company – don’t get too caught up in the ‘story’, the great future prospects, etc. Cut your losses and let your profits run http://www.beginning-investing.net

6. Deadly Sin #4 - Emotion The beginning investor often lets emotions drive trading Common emotions to be on guard against include boredom, revenge and fear of missing out The correct mindset is, “Let’s see what will happen.” Don’t make assumptions To keep emotions in check, plan the trade, and then trade the plan http://www.beginning-investing.net

7. Deadly Sin #5 – Chasing Tops ‘The last tick is the most expensive’ Which is more painful – leaving money on the table by selling too early, or letting a profit turn into a loss by selling too late? Use a trailing stop to protect open profits On entering a trade, set a profit target, and stick to it. http://www.beginning-investing.net

8. Deadly Sin #6 – Strategy Pinball The beginner looks for the ‘Holy Grail’, the system that makes profit trade after trade Two or three losses in a row are enough to convince him to drop his system and try another one – it’s like queue-hopping The weekends are the worst time – when the markets are closed there is more time for ‘fine tuning’, i.e. tinkering http://www.beginning-investing.net

9. Deadly Sin #7 – Assigning Value The beginner assigns a certain value to a stock This value is normally arrived at by reference to the price paid for the stock Holding on to this perceived value can lead to some bad trading decisions ‘The market can stay irrational longer than you can stay solvent’ http://www.beginning-investing.net

10. The 7 Deadly Sins of Beginning Investors Underfunding Overtrading Ignoring stops Emotion-driven trading Chasing the last penny Strategy pinball Assigning a value Avoid these sins, and improve your trading! http://www.beginning-investing.net