Investors: Know what not to do, than what to do!

Investors: Know what not to do, than what to do!

Once you eliminate the errors, shortcomings and goof-ups, the returns will automatically come. Over a period of time interacting with thousands of investors, it is observed that there are certain traits in investors, which indicate that they won’t do well in the stock market. Here are a few of them:

1. The ones who panic really quick. If the stocks are down, they immediately resort to panic selling.

2. Those who lack patience and tolerance.

3. Those who are here to gamble and play the markets rather than invest into businesses.

4. Those who borrow money and invest in bull markets.

5. Those who sell quickly on a sight of initial profit.

6. Hyper active traders, disguised as investors, who want to compulsively buy and sell frequently.

7. Emotional investors who let market moods and personal life dictate their investing decisions.

 8. Those who can’t live frugally and have a strong urge to show off their wealth and play status games.

9. Those with inconsistent streams of income who don’t invest on a regular basis. This keeps their portfolio relatively small and they lose out on the compounding benefits in the later stages of investing.

10. Those who don’t have hunger to make it big or sustain once they’ve made it big.

Often, it’s the blind spots we are unaware of that leads us to unexpected and unwanted results. If you are someone, who identifies with the above traits, you should work on them. Stock market investing is a journey of learning and then earning. Ironically, most investors think the other way.