AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 50 : 26.07.2020
A small retail investor/trader who followed live calls of a famous trainer on a popular social media video network lost a substantial chunk of his investment portfolio in just two days after the call went wrong. Things like heserarely make it to media headlines though they happen every now and then. Hence, we take this opportunity to go back to the basics of investing. 1. Get Educated : Whom should investor blame when his investment strategy does not work?While typical investors push the blame on someone or something, it is mostly his lack of knowledge or understanding of the financial instrument that leads to loss. For example, investors try trading in derivative instruments to get big money with small capital ignoring the fact that derivatives are largely hedging instruments but carry a risk of total capital wipe-out if they are not handled correctly. Investors should ask themselves as to how much time they are spending reading or learning about the markets. Modern stock mark...