Picking Stocks to Avoid

By default, the focus for investors is finding attractive investment opportunities. The focus on finding attractive stocks begins to create a mental bias that urges investors to find something in which to invest. As a result, whether the market is an uptrend or downtrend, whether stocks are cheap or overvalued, the urge to make investments disregards trumps such considerations. The result is poor investment choices and loss of capital.

In investing, sometimes not losing means winning and winning big. Knowing what stocks to avoid is just as valuable as knowing what stocks to own. As the year kicks off, some popular or otherwise interesting stocks look very tempting. Yet investors would be well advised to put the investments in the too-hard-to-understand pile. If Warren Buffett can admit there are some situations he can't analyze, then that certainly means everyone else has even greater investment deficiencies....511 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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