Five worst trading mistakes.

This is a worth reading article from Business Insider.
The five worst investing mistakes are:
1. Trading Too Much.
2. Scrambling to overcome losses. This means selling profitable stocks to pay for the losers which are held on.
3. Focusing on mutual fund past returns rather than fees. Focus should be on costs.
4. Going with what we know. Investors should diversify rather than stay with what they feel is comfortable.
5. Falling prey to manias and panics.

American Markets take a tumble

On Tuesday, April 10, the Dow closed 213 points lower while the S&P500 was a full 23 points down. This is the backdrop against which our own markets will open today.

A bearish head and shoulder in the Dow and S&P is working its way down. Lower levels are likely.

The Nifty has been in a trading range for many weeks. The range is getting narrower.  A significant breakdown / break out is imminent.  Given the short term trend which remains down, it is possible that we may move lower than 5150 towards 4800. These are not targets, just possibilities.

Traders who have simply followed the short term trend should have remained on the short side for the past few days. On CNBC-TV18 I had explained that the stop for short positions is 5320. We will see if these levels change today.

Have Fun!