There are very few things in life that I consider myself an expert in, and investing is not one of them. If I was then I would have been a millionaire and would not be going to work every morning. I have not only earned PhD in my professional subject, but I also have PhD in investing mistakes.
The biggest challenge for me was to identify the top 3 (and not top 10 or top 5). This made me think hard to rate which would be top 3 investing mistakes.
At the end of the post, I will pass on the baton to my fellow bloggers to come up with their mistakes. The more we share and create awareness, we all will be a better investors.
(1) Not having a well defined strategy
The most important aspect of do-it-yourself investing is to have a well defined plan which includes style of investing, time line, diversification, asset allocation, and how you are going to manage it. In my early days of investing, I thought I had a plan. I thought making few quick trades, smaller incremental capital appreciation, etc was my so called well defined plan. I was new and hence, the allure of tipster’s and advisors tips was just too strong. Alas! that was not to be. It was a little bit of this, a little bit of that, and I end it became as little bit of everything. Not anymore. I fired my tipster a long way back.
Now I have more time to do other things and I can sleep peacefully every night without thinking what trade I have to make next day. Continue reading rest of this article…
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