In this episode of Magic Markets, we decided to look at some of the common mistakes made by investors and traders in the market.
We covered topics like:
• Not knowing whether you are a natural trader, investor or hybrid of the two
• The risks of not diversifying into different asset classes
• The trouble with panicking during tough times
• Checking your portfolio too often
• Assuming that certain industries are always a good investment
• Focusing too much on dividends without looking at how they are funded
• Not critically assessing the strategy of the entity and only focusing on the numbers instead
• The importance of flexibility, openness to new ideas and information and the conviction to follow through
We all make mistakes in the market. The more we talk about them, the better we all become.
Thank you for the emphasis on alternative asset classes in addition to diversification across equities.
Looking for a recommendation for a low capital (around R20K) entry point into private equity. I learn better with some skin in the game.
Hi Charles. Alternative assets tend to need much larger investments. R20k won’t even touch sides in a private company unfortunately. It’s likely that you’ll have to stick it out in public markets for now and work up to a larger capital base for private / alternative investments. All the best!