Out of so many investors in the financial market, how many of them are truly skilled investors? It is of little wonder that some begin to ponder about the role of luck in our investments. While there is overwhelming evidence that value investors, in general, do perform much better than the average investor over the long run, there are also several investors who made it ‘big’ by speculating and trading in the short run. Their short-lived successes reinforce the general view that speculation is the fastest way to riches. It is extremely important for investors to be aware of the role of luck in investing. Without this knowledge, investors are very prone to this psychological pitfall – self-attribution bias. Basically, it is where we attribute successes to our ability and failures to luck. Kind of sad, isn’t it? Importance of luck If you believe that investing is 100% skill,

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