货币英语 17 Common Investing Mistakes

By Andrew Horowitz.

Today on MoneyGirl, we will take a look at the seven most common mistakes investors² make and the lessons that we can be learn from them.

Several listeners have written in and asked how to avoid the most common new-investor¹ missteps.

What am I talking about? Think back for a second…Have you ever found yourself saying: That was so stupid, I should have known better. Or, why did I sell that stock? Or even, why did I listen to Uncle Irv’s stock tip?

AND, do you have that condition I call Red-Forehead-Syndrome? You know, when you bang your head on the desk over and over because you feel you made a stupid mistake when investing.

Do doo da dooo! Help has arrived!

Believe it or not, even Warren Buffet³ has made a mistake or two during his illustrious 40-plus years of investing. So, you should expect to make some mistakes yourself. The trick is to recognize your mistakes and learn from them.
Mistake Number 1 – Using Too Much Margin⁴
Margin, or borrowing to leverage⁵ your investments, is known in investment circles as "free money." But the truth is, many times it is exactly the opposite. If you use too much borrowed money, and your margined- investments start losing, your losses will be compounded. Remember, eventually you will have to pay back the money that was borrowed and if you didn’t use margin wisely, you can really be in for some financial pain. If you use margin without discipline, you might as well just throw your money out a window--you will get the same result. The lesson to be learned is simple. As a new investor, use margin sparingly, if at all. Wait until you are more experienced and more aware of the pitfalls⁶ of investing on margin.
Mistake Number 2 – Buying Stocks On Unsubstantiated Tips
This is the mistake played out so well on sitcoms⁷, comedy routines, and with your crazy Uncle Larry who tells you that he is "quite sure this is the next hot stock.” Taking a tip in itself is not a huge mistake, but not following up on these "tips" with thorough research and not considering the source can be the biggest financial faux pas you will ever make. Just because you got the tip from your crazy Uncle Larry, who is back on his winning streak,ever since he got back from the “pen” may not be a great long-term strategy. The lesson to be learned – Thoroughly⁸ research any "hot tips" and try to get a second opinion before investing your hard-earned money.
Mistake Number 3 – Day Trading
As alluring⁹ and flashy as day trading appears to the inexperienced outsider, day trading for a novice¹⁰ investor is nothing short of money-masochism. You have surely heard about investors who spend all day in front of the computer buying and selling stocks. You have also heard the stories of day traders making thousands on one trade before their first cup of coffee in the morning. But, did you know these investors also started small? They worked their way up to the bigger profits …and losses. In order to be successful, they need a good amount of data, research, and a well-heeled strategy to make a consistent profit. As a day trader, you need training, patience, and most importantly – discretionary capital. Without these and specialized¹¹ trading software, you can lose and lose fast. The lesson to be learned – If you are not particularly skilled at dealing¹² with stress, there are other options other than day trading to help build your wealth. Look at day trading as a career, not a hobby or sideline.
Mistake Number 4 – Overestimating¹³ Your Abilities
This is the probably the worst mistake the new investor can make. Overestimating your abilities as an investor is usually the product of early success. Often times, when you begin managing investments, you can get swept up in the euphoria and start drinking in your own success. Overconfidence while investing is the trait of a rank amateur--the amateur who eventually wonders why his early success has turned into massive failure. Sure, If you invest your time wisely in research and strategy, you can do well, but you need to always be on the lookout¹⁴ for your next landmine¹⁵. Always ask, what am I missing, what can go wrong?

The lesson to be learned – Do not assume that simply because you have a computer and the Internet that you can beat the pros¹⁶. Red and green buy and sell strategies may get you a profit here or there, but investing requires patience and above all, a touch of humility¹⁷.
Mistake Number 5 – Forgetting to Look At the Big Picture
Even after studying all of the technical jargon¹⁸ – financial statements and predictions – many new investors forget to look at the rest of the picture – the economy and the trend. The pros say: “The trend is your friend” and “Don’t fight the tape.” Sometimes we get caught up in the minutia¹⁹ and forget to look around at what is right in front of us. Remember, investing in bad stock in good times may produce profits, but investing in a good stock in bad times will often produce losses. Step back and look at things from a distance to gain perspective.

The lesson to be learned – Looking at the big picture is just as important as being technically²⁰ savvy²¹ and fundamentally correct. If the wave is big enough it will knock down even the biggest building. The same is true with the markets. Remember, a rising tide raises all ships.
Mistake Number 6 – Compounding Your Losses With Pride
Many investors spend days, and even weeks, before choosing to invest in that perfect stock. But what happens when the stock goes south? Well, many novice investors let their pride get in the way and they choose to keep the stock. William O’Neill teaches that stocks should be sold once they are 7% lower than your purchase cost. No ifs, ands or buts.

The lesson to be learned – No matter how much time you spend researching a stock before you invest , always have a sell discipline. Make sure you are following a plan to ensure that your downside risk is tolerable. Take pride and emotions and leave them at the door, there is no room for either of those in a profitable portfolio²².
Mistake Number 7 – Beware the Bargain Stock
Sometimes a stock is low because it is supposed to be. Sure there are times when a stock is mispriced, but not often. There may be reasons that you are not aware of that the price has crashed 50%. Even if everything looks good, something may be awry²³. In many cases, there may be a fundamental reason for the decrease in price that will revel²⁴ itself sometime in the future.

Lesson to be learned – Price alone should not be the determining factor in making a decision of whether a stock should be purchased. Do your homework.
For more information about getting started in investing check out The Winning Investor's episode for starting out as an investor and Money Girl's episode of investment strategies.
Cha-Ching …and that’s all for now. Courtesy of Andrew Horowitz, guest host of Money Girl’s Tips for a Richer Life. Thanks for tuning²⁵ in to “Money Girl”. And to thank Darren, Katie and Shannon for sending in questions that helped with this important show topic, we are going to send you a copy of my book.

Remember, these disciplines are just a few that I cover in my Book – The Disciplined Investor – Essential Strategies for Success. Pick up a copy at Amazon and start on the road to becoming a disciplined investor.

As always, everyone’s situation is different, so be sure to consult a tax or financial advisor²⁶ before making important financial decisions. This podcast is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice.

Thanks for listening!

 

1 investor   

n.投资者，投资人

参考例句：

• My nephew is a cautious investor.我侄子是个小心谨慎的投资者。
• The investor believes that his investment will pay off handsomely soon.这个投资者相信他的投资不久会有相当大的收益。

2 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

3 buffet   

n.自助餐；饮食柜台；餐台

参考例句：

• Are you having a sit-down meal or a buffet at the wedding?你想在婚礼中摆桌宴还是搞自助餐？
• Could you tell me what specialties you have for the buffet?你能告诉我你们的自助餐有什么特色菜吗？

4 margin   

n.页边空白；差额；余地，余裕；边，边缘

参考例句：

• We allowed a margin of 20 minutes in catching the train.我们有20分钟的余地赶火车。
• The village is situated at the margin of a forest.村子位于森林的边缘。

5 leverage   

n.力量，影响；杠杆作用，杠杆的力量

参考例句：

• We'll have to use leverage to move this huge rock.我们不得不借助杠杆之力来移动这块巨石。
• He failed in the project because he could gain no leverage. 因为他没有影响力，他的计划失败了。

6 pitfalls   

（捕猎野兽用的）陷阱( pitfall的名词复数 )； 意想不到的困难，易犯的错误

参考例句：

• the potential pitfalls of buying a house 购买房屋可能遇到的圈套
• Several pitfalls remain in the way of an agreement. 在达成协议的进程中还有几个隐藏的困难。

7 sitcoms   

n.情景喜剧( sitcom的名词复数 )

参考例句：

• This is the stuff most stadard TV sitcoms are made of. 这是大多数标注的电视幽默剧所采用的题材。 来自《简明英汉词典》
• In most countries, prime-time Monday night television is dominated by sitcoms. 在大多数国家，周一晚上的电视黄金时段都由连续剧所占据。 来自互联网

8 thoroughly   

adv.完全地，彻底地，十足地

参考例句：

• The soil must be thoroughly turned over before planting.一定要先把土地深翻一遍再下种。
• The soldiers have been thoroughly instructed in the care of their weapons.士兵们都系统地接受过保护武器的训练。

9 alluring   

adj.吸引人的，迷人的

参考例句：

• The life in a big city is alluring for the young people. 大都市的生活对年轻人颇具诱惑力。
• Lisette's large red mouth broke into a most alluring smile. 莉莎特的鲜红的大嘴露出了一副极为诱人的微笑。

10 novice   

adj.新手的，生手的

参考例句：

• As a novice writer,this is something I'm interested in.作为初涉写作的人，我对此很感兴趣。
• She realized that she was a novice.她知道自己初出茅庐。

11 specialized   

adj.专门的，专业化的

参考例句：

• There are many specialized agencies in the United Nations.联合国有许多专门机构。
• These tools are very specialized.这些是专用工具。

12 dealing   

n.经商方法，待人态度

参考例句：

• This store has an excellent reputation for fair dealing.该商店因买卖公道而享有极高的声誉。
• His fair dealing earned our confidence.他的诚实的行为获得我们的信任。

13 overestimating   

对（数量）估计过高，对…作过高的评价( overestimate的现在分词 )

参考例句：

• I think you're overestimating his abilities. 我看你对他的能力评价过高。
• With hindsight, he was overestimating their desire for peace. 事后看来，他高估了他们对和平的渴望。

14 lookout   

n.注意，前途，瞭望台

参考例句：

• You can see everything around from the lookout.从了望台上你可以看清周围的一切。
• It's a bad lookout for the company if interest rates don't come down.如果利率降不下来，公司的前景可就不妙了。

15 landmine   

n.地雷

参考例句：

• A landmine is a kind of weapon used in war.地雷是一种运用于战争的武器。
• The treaty bans the use,production and trade of landmine.那条约禁止使用生产和交易雷。

16 pros   

abbr.prosecuting 起诉；prosecutor 起诉人；professionals 自由职业者；proscenium （舞台）前部n.赞成的意见( pro的名词复数 )；赞成的理由；抵偿物；交换物

参考例句：

• The pros and cons cancel out. 正反两种意见抵消。 来自《现代英汉综合大词典》
• We should hear all the pros and cons of the matter before we make a decision. 我们在对这事做出决定之前，应该先听取正反两方面的意见。 来自《简明英汉词典》

17 humility   

n.谦逊，谦恭

参考例句：

• Humility often gains more than pride.谦逊往往比骄傲收益更多。
• His voice was still soft and filled with specious humility.他的声音还是那么温和，甚至有点谦卑。

18 jargon   

n.术语，行话

参考例句：

• They will not hear critics with their horrible jargon.他们不愿意听到评论家们那些可怕的行话。
• It is important not to be overawed by the mathematical jargon.要紧的是不要被数学的术语所吓倒.

19 minutia   

n.微枝末节，细节

参考例句：

• They are take great pains for the every minutia.他们为每个细节煞费苦心。
• Much of his early work is concerned with the minutiae of rural life.他早期的许多作品关注的是农村生活中一些鸡毛蒜皮的琐事。

20 technically   

adv.专门地，技术上地

参考例句：

• Technically it is the most advanced equipment ever.从技术上说，这是最先进的设备。
• The tomato is technically a fruit,although it is eaten as a vegetable.严格地说，西红柿是一种水果，尽管它是当作蔬菜吃的。

21 savvy   

v.知道，了解；n.理解能力，机智，悟性；adj.有见识的，懂实际知识的，通情达理的

参考例句：

• She was a pretty savvy woman.她是个见过世面的漂亮女人。
• Where's your savvy?你的常识到哪里去了？

22 portfolio   

n.公事包；文件夹；大臣及部长职位

参考例句：

• He remembered her because she was carrying a large portfolio.他因为她带着一个大公文包而记住了她。
• He resigned his portfolio.他辞去了大臣职务。

23 awry   

adj.扭曲的，错的

参考例句：

• She was in a fury over a plan that had gone awry. 计划出了问题，她很愤怒。
• Something has gone awry in our plans.我们的计划出差错了。

24 revel   

vi.狂欢作乐，陶醉；n.作乐，狂欢

参考例句：

• She seems to revel in annoying her parents.她似乎以惹父母生气为乐。
• The children revel in country life.孩子们特别喜欢乡村生活。

25 tuning   

n.调谐，调整，调音v.调音( tune的现在分词 )；调整；（给收音机、电视等）调谐；使协调

参考例句：

• They are tuning up a plane on the flight line. 他们正在机场的飞机跑道上调试一架飞机。 来自《简明英汉词典》
• The orchestra are tuning up. 管弦乐队在定弦。 来自《现代汉英综合大词典》

26 advisor   

n.顾问，指导老师，劝告者

参考例句：

• They employed me as an advisor.他们聘请我当顾问。
• The professor is engaged as a technical advisor.这位教授被聘请为技术顾问。