Individual investors make different types of trading mistakes; these include but are not limited to:
Individual investors make different types of trading mistakes; these include but are not limited to: • Trading too frequently, which leads to extra costs. • Selling wining positions and keeping losing ones, which has been called “the disposition effect”. • Being easily influenced by Medias, colleagues and friends which may lead to panic reactions. • Using leverage, which may lead to large gains but also to large losses especially when combined with frequent trading activities. • Not having a sufficient financial knowledge to know what they are doing.