– There is story of a Poor man who overheard conversation between two rich men. They were talking about that “Money attracts Money”.
– He was very happy to learn new “Mantra of becoming Rich”.
– He took out few silver coins from his savings and went to money lender (Those who involved in Money related transaction; They charge interest on Money they gave). He put those coins on to his table and waits for his attention as money lender was busy with some other customers.
– As he was waiting, Money Lender helper saw few silver coins on the table, he grab them and put in safe where other money kept safely
Poor Man immediately shouted – What you are doing? This is my money.
Seeing nuisance, Money Lender came and ask both what is the matter?
Both Explained the whole scenario and Money Lender (Rich Man) said again
Yes -Its true “Money Attracts Money” , But in this case My money attraction is more than yours as I hold more than you.
So now understood “ Why most of the Retail Investors lose money in share market”.
So here is list mistakes which most of small investors make in stock markets:
1) 1) Blindly follow successful Investor (like Rakesh Jhunjhunwala) – His risk appetite may be different from yours.
2) 2) Not enough emergency or contingency funds.
3) 3) Not having adequate insurance before investing.
4) 4) Listening to friends/Relatives who know nothing.
5) 5) Not Selling Poor Investments Emotionally attached to Investment.
6) 6) No regular investment schedule . http://financialhealthmeter.
Your comments /suggestions are Welcome.