Youngsters have great energy in physical as well as in mental form. This energy should be channelized in a correct way. If it flows in a wrong way, it would not only affect that particular youngster but to his or her family as well as society at large. So, it’s a primary responsibility of all elders in the family as well as from the society to make them aware of the pitfalls they might face in life. Here in this article, we would discuss market pitfalls that can be avoided by the youngsters in their early investing and or trading activity. Let’s go deep into it…
- Wrong Understanding:-
If we understand anything wrong then of course our interpretation would also be wrong as it is based on wrong and limited understanding and knowledge. Many youngsters see the Market as a source of earning quick money. They see many such videos where it is presented how one can earn a large amount of money in a short period of time. But that is not the actual scenario. A wealthy person can be wealthy only through his hard work, patience and consistency. There is no short cut as such. Youngsters should first understand what the market is and investment is all about.
- What’s Friends are doing? :-
Many youngsters get trapped in such feelings. They want to do anything only because their friends are doing it. Situations and the circumstances are never same to everyone. When one does only because of what his or her friend is doing, then there is a 99% chance that he or she will fall on their face.
Investment in the market is always done only after detailed analysis of our standard of living and goals that need to be achieved.
- Conduct your own research:-
What’s App University and many such other social media platforms are the biggest influencers of today’s youngsters. Information, tips from such sources are very fatal to young and or any age investor. Instead of making decisions based on such sources, use your own research and study to gain in the present as well as in future. Even if you face failure and or any negative result after using your own research and study, it would not demotivate you; instead it will give you moral satisfaction that you have faced failure and or negative result after taking efforts on your own.
- Futures & Options (F&O):-
In my earlier article “8 principles to avoid financial crisis” I already explained why F&O is not everyone’s cup of tea. Here also I want to highlight this as a youngster’s point of view. Trading in F&O not only requires experience and talent but a character which can remain calm and peaceful in adverse situations. Many youngsters are not that much prepared. And in earning quick money they lost their parents hard earned money or their own hard earned money. Due to such scenario many would attempt suicide also. So, my humble request and suggestion to youngsters is that please don’t go for F&O at very early in life.
- Start with small:-
You must have heard the saying that drop by drop a pond would create. So, at an early age of your life, how much money you start investing is not important; what is important is consistency in your investing approach. Start with small as good as Rs.500/-. Every drop is important in the ocean. Ocean is created by every such single drop. Therefore, in your early age, focus on consistency rather than going for a big amount of SIP’s.
- Use authentic source:-
Nowadays there is a storm of social media influencers in all the fields. Very few are authentic. But, as youngsters if our financial decision is based on such social media influencers then there are strong chances of losses. We as youngsters and even the elders must understand the need of an authentic source in our financial decision making.
Instead of using such free tips and or social media influencers read good financial magazines, newspapers, books and or do a paid course from recognized institutes or professionals. Identifying and using authentic sources for investment is more important. If you want to remain in the market for a long period of time.
*****
You can reach to me at [email protected]
Author Bio
