1. Education System. - Our education system does not equip us to invest or to take charge of our own money. This education system is geared more towards finding people "jobs" to do at a steady monthly income.
2. Culture - we rely too much on gossip, small talk and friends to get investment advice and making important life choices.
3. Not relying on data - We generally are not data driven, even when we do we are selective of the data we want to use without checking sources or cross referencing it and doing proper background research.
3. Part time job : For most people investing in shares is a part time job, while they do something more important during the rest of their time, and rely too much on our luck and good fortunes to make a return.
4. Lack of proper regulations in the market: Investors know this and they want to follow the so called star investors who seems to have an edge over the others.
5. Emotional Maturity: Lot of us are ready to press the panic button without making informed decisions and not been able to keep our heads up even in the worst of times;
6. Lack of experience : There is no substitute for this, in my view, in frontier markets. Average age of our investors are much less than the developed markets.
7. Penny wise, pound foolish: Not knowing when to cut your losses but keep holding on and lamenting about a book loss for years to come and losing more opportunities.
8. Lack of discipline : like every craft, a certain amount of discipline and skills are needed to do something like investing in the share markets and to do it well.
9. Commitment: Not willing to invest time to read, focus and talk specifics and most importantly not willing to learn from others. Most of the time egos get in the way of sound judgement.
10. Not being humble enough: when we make mistakes, not to justify them or blame others, but to learn from it. This is the best lesson most people get at a huge cost but forget at the expense of a paper qualification.
The current downturn is an good opportunity to go back to the drawing boards for everyone who lost money to see what we can do better the next time.