Most people want to know how to succeed. However, they should also research about what makes people fail. Reasons for failure and reasons for succeeding are not always opposites. Sometimes it is easier to succeed when you know what to avoid. One such threat to your success is a runaway trend. Do not get into an investment if you have already missed the entry price that you were hoping for. Getting into the investment at the wrong time could spell a lot more trouble. The best thing you should do at this point is to wait before you make your next move.

Another threat to your stock experience is averaging down. Ignore any advice to buy stocks [http://halleducation.com/] that are at a losing end. You may be using less capital for this financial maneuver but investing in a losing stock should be obviously a bad idea to you. Instead of averaging down, you should go for pyramiding or averaging up. Whatever your move, you should not invest too much on just one type of stock. That is subscribing to the proverbial all the eggs in one basket. You should always look for the stock that is currently doing well. So, investment is about the right timing.

Although you should look at several investments, you should not over diversify and remember to track everything with accounting software. That would mean having to maintain several investments. Unless you have someone else managing your portfolio while you get on with the rest of your life, you should stick to a few investments. The problem is, as a newbie, it is unlikely that you have such an assistant. So, you have yourself to depend on. You need to gauge yourself in terms of how many investments you can track on your own. Remember that your waking life should not be limited to staring at stock values, buying and selling.