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Market anchoring costs investors a fortune in lost capital and lost choice. They hold on within the hope that their purchase price will make sure again and stubbornly believe their initial hypothesis of the stock is correct can easily be consideration to be correct. Whilst they are holding and watching their losses mount, very good also getting left behind on other trading opportunities which will in the end come their way.

If running of thinking sounds familiar to you, it may explain a person are yet to make substantial and consistent profits out of this market. It has to also explain why you're portfolio is littered with dog stocks which are trading with the fraction of their hey-day prices and are getting sideways at best.

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By the end of December BHP is in-an-almost-vertical descent as the first rumblings among the Credit Crisis surface. Together with price now at $30 and this market in a panic, the investor realises their initial analysis was incorrect and chickens out side.

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