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
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
No comments:
Post a Comment