What are the pitfalls that the young investor should avoid?
To my mind, as mentioned above, young investors should avoid the pitfalls of investing based on tips or on inside information or based on fashion. On the qualities most necessary for investing. Most required qualities for proper investing are patience, diligence and discipline. Should parents encourage the young to invest? Yes. Parents should definitely inculcate the concept of investment in their children from an early age. It helps develop a sense of responsibility and respect, as far as wealth is concerned. Would it be a good idea to manage the portfolios of relatives and friends? No, absolutely not. Every investor has different investment objectives, time horizon, risk-return profile and likings. One should never take the risk of trying to do these things for relatives/ friends. Instead, they should be best guided to professional money managers. Is there any benchmark of how much failure can be digested? Failure, without doubt is the other part of the coin. Therefore, it is only to
