I realised these are common pitfall because new investors have similar reactions. Not just that, everyone has the tendency to take similar shortcuts to decision making.
Hence, if you are new to investing, these are some common pitfalls to take note of.
It is possible to learn from the silly mistakes of others and this can save you money.
Silly Mistake #1: Choosing a share or a fund based on dividend yield!
Bad idea! And a very common one! I'd share with you an example.
In Singapore, listed company Asian Pay TV Trust (APTT) cut it's dividend rate massively in 2019.
It was from 6.5c in previous years to ONLY 1.2c in 2019! That's more than an 80% drop!
Needless to say, share prices fell massively soon after.
Many analyst have highlighted it's unsustainably high dividend rate which was above its Free Cash Flow.
What about for funds?
If you see the chart below,
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