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Letting Losses GrowOne of the defining characteristics of successful investors and traders is their ability to take a small loss quickly if a trade is not working out and move on to the next trade idea. Unsuccessful traders, on the other hand, can become paralyzed if a trade goes against them. Rather than taking quick action to cap a loss, they may hold on to a losing position in the hope that the trade will eventually work out. A losing trade can tie up trading capital for a long time and may result in mounting losses and severe depletion of capital.$BlackBerry(BB)$$AMC Entertainment(AMC)$$NIO Inc.(NIO)$

Averaging Down or UpAveraging down on a long position in a blue-chip stock may work for an investor who has a long investment horizon, but it may be fraught with peril for a trader who is trading volatile and riskier securities. Some of the biggest trading losses in history have occurred because a trader kept adding to a losing position, and was eventually forced to cut the entire position when the magnitude of the loss became untenable. Traders also go short more often than conservative investors and tend toward averaging up, because the security is advancing rather than declining. This is an equally risky move that is another common mistake made by a novice trader.$NASDAQ(.IXIC)$$DJIA(.DJI)$

Not Using Stop-Loss Orders A big sign that you don't have a trading plan is not using stop-loss orders. Stop orders come in several varieties and can limit losses due to adverse movement in a stock or the market as a whole.1 These orders will execute automatically once perimeters you set are met.Tight stop losses generally mean that losses are capped before they become sizeable. However, there is a risk that a stop order on long positions may be implemented at levels below those specified should the security suddenly gap lower—as happened to many investors during the Flash Crash. Even with that thought in mind, the benefits of stop orders far outweigh the risk of stopping out at an unplanned price.A corollary to this common trading mistake is when a trader cancels a stop order on a losing

Long term investment have more benefits than short term investment. It removes noise and emotion in the market. As long as you invest in companies that have strong fundamentals and good cash flow, you should see your portfolio grows over the time. Unless you like gambling…Short term investment involve risk similar to gambling. It's suitable for people who likes to take risk and to make money fast. Short term investment also require more screen time. However, long term investment requires patience and lesser screen time. Lesser volatilityInvestment held for longer periods tend to show less noise. It always outperform market (If you invest in good companies) and prevent you from missing those good times. Paying less taxes and commissionsIf you are an active trader, you have to pay more taxes

Ignoring Risk AversionDo not lose sight of your risk tolerance or your capacity to take on risk. Some investors can't stomach volatility and the ups and downs associated with the stock market or more speculative trades. Other investors may need secure, regular interest income. These low-risk tolerance investors would be better off investing in the blue-chip stocks of established firms and should stay away from more volatile growth and startup companies shares.Remember that any investment return comes with a risk. The lowest risk investment available is U.S. Treasury bonds, bills, and notes. From there, various types of investments move up in the risk ladder, and will also offer larger returns to compensate for the higher risk undertaken. If an investment offers very attractive returns, als

Forgetting Your Time HorizonDon't invest without a time horizon in mind. Think about if you will need the funds you are locking up into an investment before entering the trade. Also, determine how long—the time horizon—you have to save up for your retirement, a downpayment on a home, or a college education for your child.If you are planning to accumulate money to buy a house, that could be more of a medium-term time frame. However, if you are investing to finance a young child's college education, that is more of a long-term investment. If you are saving for retirement 30 years hence, what the stock market does this year or next shouldn't be the biggest concern.Once you understand your horizon, you can find investments that match that profile.$S&P500

Not Regaining BalanceRebalancing is the process of returning your portfolio to its target asset allocation as outlined in your investment plan. Rebalancing is difficult because it may force you to sell the asset class that is performing well and buy more of your worst-performing asset class. This contrarian action is very difficult for many novice investors.However, a portfolio allowed to drift with market returns guarantees that asset classes will be overweighted at market peaks and underweighted at market lows—a formula for poor performance. Rebalance religiously and reap the long-term rewards. $Tesla Motors(TSLA)$$AMC Entertainment(AMC)$$Meta Platforms, Inc.(FB)$

Chasing After PerformanceMany investors or traders will select asset classes, strategies, managers, and funds based on a current strong performance. The feeling that "I'm missing out on great returns" has probably led to more bad investment decisions than any other single factor.If a particular asset class, strategy, or fund has done extremely well for three or four years, we know one thing with certainty: We should have invested three or four years ago. Now, however, the particular cycle that led to this great performance may be nearing its end. The smart money is moving out, and the dumb money is pouring in.$NASDAQ(.IXIC)$$S&P 500(.SPX)$$Tesla Motors(TSLA)$

While traders and investors use two different types of trading transactions, they often are guilty of making the same types of mistakes. Some mistakes are more harmful to the investor, and others cause more harm to the trader. Both would do well to remember these common blunders and try to avoid them.No Trading PlanExperienced traders get into a trade with a well-defined plan. They know their exact entry and exit points, the amount of capital to invest in the trade and the maximum loss they are willing to take.Beginner traders may not have a trading plan in place before they commence trading. Even if they have a plan, they may be more prone to stray from the defined plan than would seasoned traders. Novice traders may reverse course altogether. For example, going short after initially buyi

$Johnson & Johnson(JNJ)$J&J says its single-shot vaccine is uniquely positioned to play a vital role in saving lives in the U.S. and around the world, because many people refuse a second or booster shot. In addition, J&J's coronavirus vaccine can be stored and moved at a higher temperature than the messenger RNA vaccine, making it easier to spread in low- and middle-income countries.