What Not To Do When Investing

These were the 8 things an investor should not do while investing, as per a Ned Davis research:
1. Reacting to market fluctuations
2. Reacting to daily economic reports and news articles
3. Not buying during a downturn
Warren Buffett once said, “The best time to buy is when everyone is selling.”
4. Trying to time the market
Rick Willeford, M.B.A. and CPA/CFP, in Atlanta, says, "Market timing and day trading are for suckers.”
5. Changing investment strategy often
6. Not maintaining asset class suitable to one’s personal objectives

7. Not ploughing back profits booked

8. Investing for short term, expecting high gains

Investors lose more often not because a stock’s bad performance but because of short term objectives and trying to ride the market. The most fundamental rule in any form of investment is to invest for long term and assuming a 100% erosion of capital. This approach assumes that the money invested never existed and gains, if any, would occur only in the long run. It also suggests that profits booked should never be ploughed back in the market by a retail investor. However, it should be remembered that this approach only considers retail investors who invest small sums.