This is continued from page 1 Learn Warren Buffett Investing Style. Please also read the first page of Learn Warren Buffett Investing Style.
Its Long Term Investment Not Short Term
This is where a lot of traders lose patience. They buy stock with a long term view but after one month when they see a profit of even 5% they exit happily. This is known as change of plan for a short term profit.
After a few days they see the stock has gone up further then they rue their decision to sell at a small profit, so they buy it again only to see the stock going down, then of course they sell it. Time waits for none so over the long term they see they are making no profits either in their derivative trading or stock investing.