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Many newbies of stock market often find that the easiest way of entering the domain of stock market investing is by copying the investing techniques/portfolios of seasoned investors or institutional investors, but remember
COPYCAT STOCK MARKET INVESTMENT IS VERY DANGEROUS FOR INDIVIDUAL INVESTORS!!
There are many reasons for the questions: Why is copycat stock investing dangerous?. I am covering some of the aspects regarding the same in this post. READ CAREFULLY
1. Holding diversification becomes too difficult to achieve: Institutional Investors or Big investors hold different stocks from almost every domain in their portfolio, they have lot of money for ensuring that their risk is mitigated by a diversified portfolio. Such a diverse portfolio is too hard to match for a retail investor because of money crunch, hence they are not able to diversify and hence face a greater risk of a loss from their investment portfolio. The main reason of big investors making profits from their investments over time is 'Diversified stock portfolio'
COPYCAT STOCK MARKET INVESTMENT IS VERY DANGEROUS FOR INDIVIDUAL INVESTORS!!
There are many reasons for the questions: Why is copycat stock investing dangerous?. I am covering some of the aspects regarding the same in this post. READ CAREFULLY
1. Holding diversification becomes too difficult to achieve: Institutional Investors or Big investors hold different stocks from almost every domain in their portfolio, they have lot of money for ensuring that their risk is mitigated by a diversified portfolio. Such a diverse portfolio is too hard to match for a retail investor because of money crunch, hence they are not able to diversify and hence face a greater risk of a loss from their investment portfolio. The main reason of big investors making profits from their investments over time is 'Diversified stock portfolio'
