- Did not diversify the investments-Putting all eggs in same basket
Non-diversification is also one of the biggest mistakes that most people commit. Often investors are so confident about their investment in share that they invest all of their capital in one or just a few stocks. This kind of strategy can be successful only when one’s stock selection methodology is absolutely phenomenal or one is extremely lucky, but, to assume either of them beforehand means the trader/investor is either extremely over-confident or gambling instead of trading stocks or investing.
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