The unhealthy trend in millennial investors
1 min read
Many new retail investors have experienced the “ 21 din mein paisa double” syndrome in the last few months. Few key unhealthy trends that have emerged in retail and especially millennial investor behavior are;
Confusing Genius with a bull market – Everyone who opened an account in May has witnessed easy money. You could have run a random name algorithm on a list of stocks and you still would have made money. The last 6 months are not the best indicator of how good an investor you will become. The real game begins now and its good diligent research that will get you through.
Full time Trading – Whats worse than making quick money on a stock? – making super quick money on naked options. The rush will make you feel like the king of the world. Get into it only if you have a few years of emergency money tucked away somewhere.
Diworsefying instead of diversifying – The former means concentrating too much an asset class. There has been a huge trend of first time investors( I would call them Gen C) directly buying equities and not allocating to debt or even MFs. The last few months have been a mirage and only diversifying well will cushion your portfolio for future shocks.
YOLO is best kept to Instagram. Please don’t bring it to the stock market.
