Monday, June 1, 2015

Avoid the Herd Mentality

This tip comes number 1 in Economic Times of India, where they are know as good players of stock market and money lending business.

The typical buyers decision is usually heavily influenced by the actions of his acquiantances, neighbor or relatives. Thus, if everbody around is investing in particular stock, the tendency for potential investors is to do the same, but this technique is bound to backfire in the long run.

No need to mention that you should always avoid having the herd mentality if you do not want to lose your hard-earned money in stock markets. The world's greatest investor Warren Buffett was surely not wrong when he said, "Be fearful when others are greedy, and be greedy when others are fearfull"

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