What Can Cause You to Lose Money While Investing?
Bangalore: Many people think that they are gifted with the talent of making a perfect decision; however when it comes to investing people usually go wrong. Therefore one should try to avoid the costly mistakes to become a successful investor.
Mentioned below are some of the ways people lose their money that are listed by author P V Subramanyam in his blog Subramoney.com.
1. Know The Difference Between Trading And Investing
Many people do not understand the difference between trading and investing. Due to lack of understanding of different concepts many people lose their money.
In practical, it is the right way to handle your investments. Investment means buying a stock or other financial instrument for a long period of time, usually over a several years.
On the other hand, trading is a process where buying and selling stocks or other financial instruments for shorter period of time, usually less than few months.
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