Surprisingly often, beginners do good first deals in real estate, the financial markets and business.
Why? Answer by clicking comments, but I’ll lead off with a fairly analytical approach.
My theory is successful newbies are cautious and actually begin. What do I mean by this?
Character traits of the cautious:
Beginners who begin:
Then what happens? Intermediate investors overestimate their abilities once they gain knowledge. Did you know that most people rate their driving ability as “above average”?
Investors tweak their system. Instead of following the simple guidelines that led to success in the first place, they make adjustments. The strategy becomes a patchwork of plans. Few intermediate strategies can be articulated in one sentence.
Experience leads to on-the-fly decisions, because overconfidence creeps in. This allows emotion to take over the rational decision-maker. Greater risks are taken to avoid a loss and exit strategies become poorly defined
Three steps for Intermediate Investors to avoid the trap.