Money is
objective because when people spend it, it circulates all over the city and the
country. Stock markets facilitate the movement of this money based on critical
decisions and analysis. For novice and young investors, the perspective can be
different than that of experienced investors, as the latter have more
experience in terms of investment consequences.
1.
Fearful
The stock
market is a new world for a new or young investor, and often they would go for
minimal risks. Being fearful, the new blood of the money jungle easily falls
prey to taking sporadic action all at once. When other investors, especially
the experienced ones, are starting to sell their stocks, the novice investor
will follow suit, thinking it as a proper decision.
2.
Excessive
With great
money comes a great lust for materialistic intent, and when a novice sees his or
her stock grow great profit, this temptation becomes stronger. Remember, you
are investing for your future and for possible financial emergencies, and the
stock market can help you in that situation. Even if the stock does well today
that you could sell half your shares to buy things you want, it does not
guarantee to have the similar values in the future.
3.
Insufficiently
Systematic
Novices tend
to adopt systems from experienced investors who had found the methods
effective, but often, novices fail to notice that certain parameters exist to
make such financial methods work. Typically, an investor’s situation is
different from another investor. A systematic investor is an effective investor,
but taking note of the smallest detail there is could greatly help.
