Often you hear a news, that something extremely good has happened with a company and next morning you see the stock rises with upper-circuit for few days and then lower-circuit for another few days. Confused ? We make mistake and we learn but we can always avoid the mistakes by proper learning and knowledge. Top 5 mistakes to avoid while investing will be covered.

1. Listen to crowd

Why to depend on crowd or any other source when you have all the resources. 99% times market will go against the people. Only those who take risk of taking step against the market succeeds in long run. Always follow the strategy, BUY on dips and SELL on rise. Study the indicators and use them to predict on your own. Successful people in stock market always do self study.

2. Buy stocks based on price, not value

Most Penny Stocks in market are useless. Having less value of a stock does not mean that you have to buy in more quantity, which will surely give you more return. Less value stocks move slowly. Always remember a higher value stock of Rs 3000 will not come down to Rs 99 but it is easier for a penny stock of Rs 60 to come down to Rs 2-3. Study the financials of a company and act accordingly. This is top second mistake to avoid while investing.

3. No self Research on the stock

Random calls are followed that come in Telegram. Believe me god does exist but none of the person who operates telegram is god. With years of experience then can suggest you good stocks and make you earn good money but If they were so perfect they would be happy in their life. They will not waste their time giving you calls or help you make money and take x amount from your capital too.

Never jump into any stock blindly. I often suggest people to do their own research before buying any stock. Even if it is one single share – do your own research.

4. Being impatient with own investments

Nothing can be built in one day. It does take time. It’s very wrong for being impatient with the investment that is done. Invest in a stock that has good fundamental and extreme good balance sheet. Keep it long, be patient and enjoy the fruit. Its feels good to make 50,000 rather than loosing 5000 in trade. Positional trade is meant to give you more money. Who knows that the stock you chose might become the multi-bragger. This is top 4th mistake to avoid while investing.

5. Buy & Sell stock based on emotions

Trading cannot be done with emotions. You need to be harsh to market as the market is not going to pamper you. Within seconds your money can be whipped off. You need to have proper knowledge, you need to keep proper stop-loss. Emotional traders should quit trading. Many people commit suicide after facing loss. Understand that this is a market and it has zero emotions. You are not the victim of any particular stock. Its just your own carelessness Ram often used to tell me that the market falls whenever I buy a stock and rises when I sell it. There is no good luck or bad luck. Its all your mind and your thinking.

Happy trading !!

Jai Hind !!

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