07 Jan Flames & Fumes
In cases of ‘Fire’, most victims die of suffocation caused by the fumes and not by burns caused by the flame.
Our problem is we don’t understand wherein lies the real ‘risk’. As per our perception ‘risk’ is in the flames but truth is quite different because the real ‘risk’ is in the fumes.
Likewise in investing ‘risk’ isn’t because of stock markets but because of our own ‘behaviour’ towards ‘investing’.
Risk is causes by our behaviour as under:-
1) Delay in starting investing
2) Early / untimely redemption
3) Investing for quick wealth creation
4) Investing without goals and patience
5) Investing based on news headlines
6) Investing without professional advisor
7) Investing without education