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ight be an entry point for t understanding structural graphics , the shareholder ulation in your specialist tor is imperative ”
Emma Wall nvestment analysis at Hargreaves Lansdown
added bonus , the experience you gain from exploring an area you ’ re familiar with should help you hone skills for building a more diversified portfolio in the future . Laidler says : “ The biggest request eToro gets is for education , so if you are interested in a subject to begin with , that ’ s a good place to start .”
The reality However , being passionate about a topic area and understanding the drivers that influence a stock ’ s risk and return profile could be worlds apart . “ Just because you are an avid consumer of a company ’ s products , it does not mean that others are ,” cautions Wall . “ A passion might be an entry point for investors , but understanding structural trends , demographics , the shareholder base and regulation in your specialist sector is imperative . “ If music is your bag , you could invest in Spotify , for example – but are you aware that the Competition and Markets Authority has announced a review of streaming services ?” Another potential pitfall is letting your emotions lead your decisionmaking . “ Emotions can kill in
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