The most common rookie mistake is chasing a stock. That is simply looking at a chart, seeing a stock that has recently gone up alot in price and assumming it will continue to do good and buy it.Although this might work sometimes, it is definitley not a reason to buy a stock.Rule number 2 do not buy on someone elses tip with out doing your own research! Be carefull when investing in a sector which has recently done great and has reached its peak like the energy and oil sector. Newbies finnally have enough courage to enter the market when its too late and everyone is leaving and supply floods the market and stocks in that sector go down.(not good)Investing with no knowledge of the markets is also a mistake, educate yourself first.
Ok I will be back for the next part hope you learn something .
God bless Mr.Cash