Top 10 mistakes beginners should avoid in Stock Market

mistakes

#1 Mistake beginners should avoid in Stock Market

Don't Get Emotionally Attached


Many people get emotionally attached to the stocks, and it hits them back very hard. 

So the first thing is if you choose any stock and if the stock is giving terrible news regularly, then you should start selling your positions in it.

If you really trust the company, then one thing you can do is sell your 50% position and keep 50% positions which will help you in both the situations of the stock.


#2 Mistake beginners should avoid in Stock Market

Never trust a stock which is fluctuating without any news


If you notice any stock which is increasing gradually with no positive news then it's only because of the Big bulls/ Operators.

The investors which have an ample of money are the ones who are called Big bulls or Operators and they are the ones who can make the price of stock go up or down with their one move.

So always be attentive about this type of stocks which go up or down without any news, usually these stocks always give loss to the small or retail investors like us.

If you have any investments in stocks fluctuating without any positive or bad news then you should never make fresh buying for the sake of profits and think of exiting as early as possible from that stocks.

#3 Mistake beginners should avoid in Stock Market

Never get over-confident after one successful purchase


Usually people who have recently started with investing get excited and over-confident after one successful trade.

This belief costs them more loss than their profits in the previous successful trade.

So you should never be over-confident about your knowledge in the Stock Market, because in stock market only the ones who are always updated with latest knowledge survive for a long run.


#4 Mistake beginners should avoid in Stock Market

Never expect returns by analyzing historical data


Usually the fresh investors expect returns from any stock based on historical data or past returns, which is wrong.

Because when you analyze any stock you shouldn't analyze the stock only on one basis, you should do the overall check on that stock and then expect the results.

Because if you rely only on the historical data and do not worth considering the latest news about the market and stocks then probably you are heading to a big loss.


#5 Mistake beginners should avoid in Stock Market

Never stop investing in your self


Mostly the new investors think that we are earning a good amount of money and now we don't need the future education.

This thing is very dangerous because one of the greatest investor Warren Buffett said that The first investment you should make is investing in yourself, which means you should never compromise your studies or education for money.

Always keep investing in yourself and always keep gaining knowledge, only these two things will help you grow as an investor.


#6 Mistake beginners should avoid in Stock Market

Never Respond to Fraudulent Activities


When you open a Demat Account you will notice that you have started getting spam calls by Brokers, which influence and impress you from their brokerage discounts and offers.

You have to first confirm the broker's history and image in the market and then only provide your details to them or you can also continue with your existing broker if it's trustable.

They can also ask your details to give you offers you should also ignore that calls if it seems to be a fraud call and generally no broker demands your personal details for giving discounts and offers.


#7 Mistake beginners should avoid in Stock Market

Never make an investment decision because of online tips and advice


If you have started investing you have at least once encountered a call regarding tips about stock selection, its entry, and exit price and they demand a brokerage on that deal or an amount in percentage if you make a profit. 

Usually that stocks never make profits because this overall process is managed by some players who invest a big amount in a particular stock and they encourage people to buy it and once the price goes up their institution sell their positions and make huge profits.

But once they sell that stock, the stock price automatically crashes rapidly and you eventually go at a loss. And after that they never call you or respond to you. 

And SEBI (Securities and Exchange Board of India) never recommends you to invest through these fake tips and calls so you also cannot file any complaint regarding their organization.

#8 Mistake beginners should avoid in Stock Market

Invest only that money which you will never need, or you have no problem after losing that money


You should never invest all your money in stock market or mutual funds or any other investment platform. This mistake is done by new traders because they think that they will earn more if they invest more money.

But because of this mentality, they lose all of their money.

Stock Market is not a day game, it takes time to multiply your money.

As the Bull investor of India Rakesh Jhunjhunwala says "Stock market is the way of transferring money from the impatient to the patient". It means that you can earn profits from stock market if you hold your investments for the long-term and it doesn't matter how much money you invest in.


#9 Mistake beginners should avoid in Stock Market

Never believe in Onetime Investments always do SIP's 


One-time investments can cause you significant damages because in SIP (Systematic Investment Plan) you have to invest regularly a negligible amount which can avoid losing your money in great losses. It doesn't give that many returns as Onetime Investment but Loss prevention is better than maximum profits if you are a beginner.




#10 Mistake beginners should avoid in Stock Market

Make your Investment goals planned and fixed


Before you start investing your investing goals should be planned correctly and also fixed. 

You should take advice of any consultant or CA for your investments and don't believe on any other people for investing your hard-earned money.

Planning your investment goal will keep you focused and make you invest only that money which you have planned and it will prevent you from excessive investments.








Location: United States

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