In stock market, it’s better to know what not to do than what to do.
Once you eliminate the errors, shortcomings & goof ups, the returns will automatically come.
Over the period of time, interacting with thousands of investors, I’ve come to see certain traits in investors which are indicative that they won’t do well in stock market. Here are few of them:
1. The top on the list are the one’s who panic real quick. If the stocks are down, they immediately jump & panic sell.
2. Those with lack of patience & tolerance.
3. Those who are here to gamble & play the markets rather than investing into businesses.
4. Borrows money & invests in bull market.
5. Sells too quickly on a sight of initial profits.
6. Hyper active traders, disguised as investors, who want to compulsively buy & sell frequently.
7. Emotional investors who let market moods, worse let personal life emotions, dictate their investing decisions.
8. Those who can’t live frugally in initial years & have strong urge to show off their wealth and play status games.
9. Those with inconsistent streams of income who don’t invest on regular basis. This keeps their portfolio amounts relatively small & lose out on compounding benefits in later stages of investing.
10. Those who don’t have hunger to make it big & sustain once they’ve hit big.
There are many more things which I’ll keep adding which indicates that an investor won’t do well in stock market.
Often times, it’s the blindspots we’re unaware of that leads to unexpected unwanted outcomes.
If you are someone, who identifies with above mentioned traits, you should work on it rather than getting disappointed.
Stock market investing is a journey of learning & then earning. Ironically, most investors think the other way.
