Here is my generalisation thought of the day.
The main differences that I see between the Mum & Dad retail investor and the professional investor is;
the retail investor;
– “jumps at shadows” to whatever is scaring them in the media,
– they don’t do enough, if any work or research on their investments,
– they are their own worst enemy by entering and exiting investments at the wrong possible time,
– they don’t understand or know how to manage risk – they treat the stockmarket like a casino, and,
– they confuse investing with gambling.
Investing involves researching and understanding the business or asset, analysing its figures, determining its valuation and allow for time.
Time to wait for a bargain AND time to allow the investment to mature.