Many young investors, when they look for inspiration, look at Warren Buffet. They live and breathe by his teachings and why not? The man is a legend and they are hard to come by.
Of course, the problem occurs when they finally know his life story, his ideology and that Rule 2 is not to forget Rule 1 but they have no clue how Nifty is being calculated.
The conundrum of learning
“Risk comes from not knowing what you’re doing”
If an amateur investor has to place emphasis on the words of the people that inspire them, this quote by Warren Buffet is where they should start. Using a search engine to get advice about investment or even trading has become commonplace. There is no denying that it does come with its benefits but are they quantifiable?
There is a hole behind the painting on the wall!
Everyone is familiar with the tragedies of hidden costs, the feeling of the windows being opaque never comforts the traveler. We look for the “conditions apply” tag in everything but when our money is considered, we let it slip. The tag of having incomplete knowledge is the most lethal one because it often leads to tangible losses
Investor Education and Awareness
By definition, the capacity to read, analyze and understand investments and investment vehicles is referred to as Investor education. If you keep the technical jargon aside, it is simply the understanding of the different streams of investment or the market you are trading in. Grasping the idea of financial instruments and how their value is derived can help you avoid unwanted loss.