When it comes to stock investments, it is difficult to make money if you adopted a herd investing mentality. A few months ago, a friend of mine sent me a text to recommend investing in one of the local stocks, Yongnam. In his texts, he kept praising how good the company was, citing the various exciting business prospects and developments.
I did not solicit for his views on any stock investments before, so I was quite surprised that he tried to induce me to invest in this counter. Furthermore, I am not the sort of person who is easily influenced by others when it comes to stock investment and normally I would do my own research before investing in any counters.
So I chided him for trying to induce me to invest in Yongnam. Of course he denied flatly and vehemently defended that he was just sharing good stuff. I gave him the benefit of my doubts since he is my good friend, nonetheless, I did not invest in Yongnam.
One of the most common mistakes made by new Singapore investors is the tendency to adopt a herd mentality. Tempted to make quick profits, many novice or inexperienced investors enter