Mistakes I made in 2011 and will make sure not to repeat

Mistakes

2011 was definitely a very interesting year as far as the stock markets were concerned!

Here are the mistakes which are made and will make sure (I promise I will do my best!):

- do not sell when everybody is selling

- do not sell when a friend is panicking and pushing you to sell

- do not regret if you do not buy a share and realise it enjoyed a good increase

- did not sell a share which hit it's historical high even though my analysis was telling me that different indicators were not good (I will come back on these indicators in another article! Patience!)

Lessons learned:

- think by yourself

- do your own analysis and stick to it

- patience: if your share is a good company, time and patience will value it correctly. In other words buy and hold.

- when the market is crashing close your computer and stop watching quotations all the time. I would advise to only watch it at the end of the day and even better: once a week (on friday night!).

- when the market is crashing on the contrary buy the companies which you know, have studied well.

- the best thing is to not move. In other words when you buy you buy to hold at least 10 years. Warren Buffett said a very good thing on that, the idea being: if you cannot see yourself holding the share for at least 10 years then don't even think about investiing in it. I really like this test!

Cheers

Jeremy