Tuesday, September 30, 2014

New Investors must to avoid 15 mistakes :

Many people invest without effectively learning about the investment process or the different investment products and without considering what they really want to achieve over a long period of time. These classes of investors often react to the short-term fluctuations of the markets. By listening to the advice of self-proclaimed gurus they will buy “stocks” at exactly the wrong time, and subsequently end up with huge loss. Investing is not just about picking some stocks and parking your money, but also about avoiding mistakes. Retail investors can be better rewarded if they avoid making the following mistakes.


1. Don't be unrealistically optimistic

2. Don’t show over enthusiasm to trade

3. Don’t miss the benefits of compounding of capital

4. Don’t worry about the market, think only about the stocks where you have investing

5. Market Timing

6. Buy in times of panic

7. Don’t focus on past performance

8. Diversifying too much will kill your investment

9. Lack of Reinvestment

10. Lack of Diversification

11. Emotional Decisions 

12. Overpaying for Investment Fees

13. Not accounting for time horizon

14. Frequent trading

15. Fear based decisions

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