1."It’s gone down this much already, it can’t go much lower" - You can’t time the bottom of a stock any better than you can time its apex. This is a fool’s game.
2."You can always tell when a stock’s hit bottom" - Just because a stock has already dropped significantly doesn’t mean it won’t continue to plummet. It may.
3."If it’s gone this high already, how can it possibly go higher?" - No artificial ceiling determines how high a stock will go.
4."It’s only $3 a share, what can I lose?" - The obvious answer to that question is $3 a share. This type of mentality isn’t sound. A loss is a loss, no matter what size it is. Avoid them. You want to invest in winners.
5."Eventually they always come back" - Some companies never come back.
6."It’s always darkest before the dawn" - Things can still get darker. You need more substantial information.
7."When it rebounds to $10, I’ll sell" - Consider selling immediately. When you set an artificial target like this, the stock almost never achieves it. You could be left holding an under-performer for years.
8."What me worry? Conservative stocks don’t fluctuate much" - Today, anything can fluctuate. There are no sure bets. Don’t be complacent with your portfolio.
9."It’s taking too long for anything to happen" - Stand fast. The day after you get tired of waiting and sell will be the day the price begins a big climb.
10."Look at all the money I’ve lost: I didn’t buy it!" - No one ever lost money by delaying a stock purchase. People who think this way get desperate and make mistakes.
11."I missed that one, I’ll catch the next one" - If you missed it, forget about it.
12."The stock’s gone up, so I must be right" - Don’t base your decisions on fluctuations. Just because a stock moves doesn’t mean you were right or wrong...time will tell.