Sloth means laziness. That means, you are too lazy to do your homework before investing. I am afraid this is the most common fault of investors. If you are not so slothful, the harm caused by other 6 sins (even all committed by you) would be undermined...
- you analyze the stock's merits and defects before you follow others to invest
- you spend some time to listen to others' opinions even you need to save your face
- you regularly review your investing decisions in light of changing market conditions
- you prepare for the worst if your greedy deal ends in disaster
- you find out what is the root problem of your investments
- you calculate the full costs of over-trading
Conclusion
The best way of investor protection is that every investor knows how to protect himself. Of course there are many investment traps in the market, but who is deciding to jump into them? You are suffering from one or more of the 7 sins, then others can take advantage of them.
With self-awareness of your weaknesses, you are in a better position to reduce your investment mistakes.
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