BIGGEST FOUR TRADING MISTAKES
These are four common things that an individual may focus in order to be successful in the investment industry
· Lack of a trading plan
One should have proper plan in place before stepping into the investment world. Analyze their risk and return profile before making a decision. Moreover, they should also have a clear idea of when they should enter into the markets and exit.
· T Too much leverage
Try to be risk averse and don’t invite yourself into trouble by taking huge leverage positions. It’s was because of extensive leverage LTCM failed to cover up its positions.
· F Failure to control risk
Have a sound internal auditing and risk management team in place. Constantly focusing on the kind of exposure which a fund or their investment may be exposed too and try back you investments by investing in alternative investment avenues which would have low correlation with the traditional investments
· L Lack of discipline
Abide and comply by the standards set. Try to focus on the fundamental aspects of the investment you make rather than making a decision based on the insider information ( noise trading).Understanding the know-hows of investments and trading according would eventually end up fruitful.
