Three mistakes that investors still make

by Michael Tarsala

Jeff Voudrie has a great post on Benzinga about the three mistakes investors continue to make.

1) Reacting emotionally
It’s something that individual investors — and even professionals — have a hard time doing. Yes, it’s cliche. But it’s important to have a plan and stick to it. That’s what keeps you from letting your emotions take over, then buying high and selling low. 

2) Reliance on fundamentals over technical indicators

Covestor manager Bill DeShurko says it best: Fundamental analysis tells you what to buy. Techncials tell you when to buy. DeShurko uses both disciplines in his Dividend and Income Plus investment model.

3) Oblivious to general market direction

We write a lot of posts on the Covestor blog about market direction for a reason. Most times, it’s foolish to fight the market with individual stock picks.