\First-timers setting out to pour their hard-earned money into the share market may not have an end-goal in mind. This leads to reckless and erratic investment patterns that may cause losses. As a new investor, you tend to trade based on your guesswork instead of facts. Just because you like a certain company doesn’t mean you should necessarily invest in it, because your biases do not guarantee returns. Moreover, even though it is said that fear and greed rule the market, you should not let them sway you into making investment decisions. Because the stock market can be intimidating for newcomers, they tend to give in to their emotions. The bottom line is, new investors let emotions make their decisions.
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