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 the stock market and rely solely on rumors and tips from friends or brokers. As they lack the knowledge to invest on their own, this group of young investors value opinions of friends, brokers or relatives when it comes to investing. I am quite concerned for this group of uneducated investors because many of them will confess their regrets after paying expensive “school fees”.
To a large extent, it is not entirely their fault. Our education system is not shaped to provide guidance on personal finance and investment to our students. Many young adults are suddenly thrust into working life