Investment management errors that commonly occurs

Proper research is essential to support trading decisions in equity markets. Most retail investors trade shares on the basis of rumours and speculations, tips, or random picks.

Here are some common errors made by investors

• Poor patience

People sell stocks in order to get quick returns and lose their patience.

• Emotions

  Investors are emotionally attached to the wrong stocks and will not change to better stocks.

• Knowledge is a problem

  Inadequacy of knowledge to select the best stocks to invest in.

• Risk Management

  Investors cannot have the right risk return strategy, which can cause substantial losses.

Investors need to do extensive research on the markets before they trade. This can be difficult and it is likely that novice investors will find it very difficult to do this alone. This is not an easy task and if one is a novice investor, it will likely be very difficult for them to do so alone.