An investor who does not have a plan does not know what he wants. Investments are made to finance or accomplish a goal.
Some investors give too much importance to what is written in financial media. They almost always refer the Financial news before making any investment.
The portfolio is an investor's greatest asset. Being able to diversify one's portfolio will aid in reducing losses and maximising returns.
It's a wonderful thing to have faith in the investment manager's abilities. However, it is not appropriate to rely on the manager for every investing decision.
Just because it has performed well in the past year does not guarantee that it will continue to do so in the future.
Many investors sell their stock as the market begins to decline in value. This could result in a significant loss.
Some investors treat investing in securities as if it were gambling. They choose a security at random and invest in it if they believe it is performing well.
Just because an investment is made does not mean that the investor should keep checking the ticker or the index. This is one of the emotional errors that investors make.
In reality, the investor makes fewer trades. It is also important because an investor loses money in fees when they trade frequently.
Traders rely on market momentum, whereas investors rely on a variety of factors such as market trend, company background, and their portfolio.