This video posted in cpteh blog , I find it very informative.
This is the 1st part of the video.
Top 10 mistakes part 1 by Adam Khoo:
1) Investing without a set of pre defined buy and sell rules
Example: I bought Perisai at 0.82, it go down to 0.70, I still keep. After that it go up to RM 1. I still keep. Now it lingering at 0.82 to 0.86. Keep or Sell????
2) Trying to buy a stock at the very bottom.
" It has gone so low already, it can't go lower"
Red line ( Moving average 100 or 200) above the Blue line ( MA 50) signifies uptrend.
Example: Dijacor, buy at 1.29, now it go down again at 1.22
3) Buying on recommendations by Experts/Analysts.
- must look at intrinsic value -
intrinsic value calculation excel file - http://exceltemplates.net/financial/intrinsic-value-calculator/,
explanation : http://www.your-roth-ira.com/calculating-a-stocks-intrinsic-value.html
Example: Perisai - CIMB keep ask buy, that why I keep.
4) Buying A "Hot" stock that is overpriced.
a) never buy just before a company announcement of earning (plus minus 7 days)
b) never buy a stock in a downtrend.
Example: Scomnet, Mtronic...
5) Buying a stock based on Fundamental (logic) and ignoring technical analysis ( Investor psychology)
Example: EAH - FA good buy TA sipeh bad.