No Appropriate Arrangement: A considerable lot of the financial specialists they don't set up any arrangement, speculators should realize what they are attempting to accomplish, for this an arrangement is vital .
A few financial specialists they get ready for Kids Training, marriage , purchasing home or retirement etc..,Having a decent arrangement it causes the speculator to
choose the kind of securities to contribute, the time of venture, the amount to contribute to get the normal return, and so on..,
No Exploration : Learners they don't do any examination , they contribute aimlessly with some person's recommendation, check the historical backdrop of the endeavor shares and
the execution in the market before going ahead with any venture . It is critical to think about the organization before you contribute.
Absence of Hardwork: It is exorbitant, in light of the fact that it prompts missed openings. without hardwork , your solitary expectation is to luck out. The best
organic products without imperfection are constantly sold to start with, just the peculiar molded/harmed ones are left toward the end. It's the same with stocks, you will pass up a major opportunity for the best exchanges on the off chance that you rest.
According to my personal experience and stories from friends, the biggest real mistakes that most of the novice investors make while investing in stock market are follows:
No Proper ground work: Always study the market and understand how stock market works first before you start investing. Many of my friends and colleagues do try to invest and get panic when the market turns turmoil. When one gets free tips from professional brokers’, they do not validate the financial statements and performance of the company before they put their money in. Pity is some of them even do not know how to tell even if the stocks they are investing is good or bad.
Be Ready for the Worst: Investing in stock market is very easy way to make money and lose money. I have heard enough stories of people trying to invest with the hope of making money and then end up losing money and give up eventually. If we do not invest in the right stock when the market crashes, those stock may never rise again. So invest very carefully. Every investor makes mistakes and make loss in the early investing period but do not give up. Adopt the right method that works for you and do not over expect to make money from every stock you invest your money.
No proper Long term goals: When one try to invest they should adopt the investing technique and not the traders’ guide. One dream of making easy money in short period of time without having proper goals and plan. One thinks that trading will earn them money but its rather they burn their money without proper intelligence and without proper advise. Many friends sell their good stock which has already given 60% to 80% in a year. Do you really need to sell them when they have already given you such a good return? Sell them only when you really need them or if they have achieved your long term goal.
Lack of Hard work: When one invest in stock market, he or she risks the amount of money that they are putting in stocks until they sell them. Such investors do not even try to update themselves of the market, market segment or their invested stock related news and results. They tend to be so relaxed after putting their money thinking it will always grow. Always spend enough time in reading the market and stock news regularly and it should eventually become your habit.
Lack of Diversifying: Do not invest only in single market segment and only in one or two stocks. Try to diversify in different companies as per market segments and based on the risk categories. There could be Low, Medium and High risk categories. Depending on your risk taking ability and risk appetite, you can diversify your portfolio. Do not put all your investment in high risk stock, they are high risk of losing them too.
Trying to Tame the Market: This has to be the most common perception or myth that novice investors try to do. No one can ever tame the market, it is too wild and can hurt us. Many novice investors wait for the right time to invest which might never come. In the long run, even if there are market corrections and market crash, one can bring down the average price by putting more money on those already stock holding or do fresh buy to get at the best price. We do not need to wait them.
Investing in Penny Stocks and IPOs: I too personally lost money by trying to invest in penny stocks but never invested in IPO’s. Brokerage charges for penny stocks are already higher and they seldom burn your money rather than profit. Also IPO do not have much company history available for public like financial statements and results, so how can we invest in them? It is like gambling when we invest in IPO.
Going by intuition rather than data: When the company is not performing continuously and people are exiting at drastic rates, if one is holding such stock be careful. Re analyze your stock once again and see whether it is still good to hold or sell it even at loss and exit before it is too late. Some investor says that group or people could misguide your opinion, but give a thought again and you decide. Either group or you could be wrong, be ready to accept it for your own good.
Balancing Fear and Greed: Many new investors try to find a multi bagger stocks which will give multi fold returns without considering the risk they are undertaking. Most of the good fundamental stocks would already be priced higher and they are safer to invest rather than poor stocks which available at discounted price. There is a good reason why poor stocks are available for discounted price and there are always more people ready to buy premium stocks rather than poor stocks.
Learn, Adopt and Change: Many investors brag about how much best return they have gain in short or long term gain but are not ready to disclose the loss they have made, but be honest to yourself. However we should learn, adopt the technique, change our existing technique and take time to analyse if you could have done it better. Eventually if one change and evolve one’s investing method, you should be able to lessen your loss from your investment. I observed that people do get free tips from friends or professional but they tend to ignore them.
No Appropriate Arrangement: A considerable lot of the financial specialists they don't set up any arrangement, speculators should realize what they are attempting to accomplish, for this an arrangement is vital .
A few financial specialists they get ready for Kids Training, marriage , purchasing home or retirement etc..,Having a decent arrangement it causes the speculator to
choose the kind of securities to contribute, the time of venture, the amount to contribute to get the normal return, and so on..,
No Exploration : Learners they don't do any examination , they contribute aimlessly with some person's recommendation, check the historical backdrop of the endeavor shares and
the execution in the market before going ahead with any venture . It is critical to think about the organization before you contribute.
Absence of Hardwork: It is exorbitant, in light of the fact that it prompts missed openings. without hardwork , your solitary expectation is to luck out. The best
organic products without imperfection are constantly sold to start with, just the peculiar molded/harmed ones are left toward the end. It's the same with stocks, you will pass up a major opportunity for the best exchanges on the off chance that you rest.
According to my personal experience and stories from friends, the biggest real mistakes that most of the novice investors make while investing in stock market are follows:
No Proper ground work: Always study the market and understand how stock market works first before you start investing. Many of my friends and colleagues do try to invest and get panic when the market turns turmoil. When one gets free tips from professional brokers’, they do not validate the financial statements and performance of the company before they put their money in. Pity is some of them even do not know how to tell even if the stocks they are investing is good or bad.
Be Ready for the Worst: Investing in stock market is very easy way to make money and lose money. I have heard enough stories of people trying to invest with the hope of making money and then end up losing money and give up eventually. If we do not invest in the right stock when the market crashes, those stock may never rise again. So invest very carefully. Every investor makes mistakes and make loss in the early investing period but do not give up. Adopt the right method that works for you and do not over expect to make money from every stock you invest your money.
No proper Long term goals: When one try to invest they should adopt the investing technique and not the traders’ guide. One dream of making easy money in short period of time without having proper goals and plan. One thinks that trading will earn them money but its rather they burn their money without proper intelligence and without proper advise. Many friends sell their good stock which has already given 60% to 80% in a year. Do you really need to sell them when they have already given you such a good return? Sell them only when you really need them or if they have achieved your long term goal.
Lack of Hard work: When one invest in stock market, he or she risks the amount of money that they are putting in stocks until they sell them. Such investors do not even try to update themselves of the market, market segment or their invested stock related news and results. They tend to be so relaxed after putting their money thinking it will always grow. Always spend enough time in reading the market and stock news regularly and it should eventually become your habit.
Lack of Diversifying: Do not invest only in single market segment and only in one or two stocks. Try to diversify in different companies as per market segments and based on the risk categories. There could be Low, Medium and High risk categories. Depending on your risk taking ability and risk appetite, you can diversify your portfolio. Do not put all your investment in high risk stock, they are high risk of losing them too.
Trying to Tame the Market: This has to be the most common perception or myth that novice investors try to do. No one can ever tame the market, it is too wild and can hurt us. Many novice investors wait for the right time to invest which might never come. In the long run, even if there are market corrections and market crash, one can bring down the average price by putting more money on those already stock holding or do fresh buy to get at the best price. We do not need to wait them.
Investing in Penny Stocks and IPOs: I too personally lost money by trying to invest in penny stocks but never invested in IPO’s. Brokerage charges for penny stocks are already higher and they seldom burn your money rather than profit. Also IPO do not have much company history available for public like financial statements and results, so how can we invest in them? It is like gambling when we invest in IPO.
Going by intuition rather than data: When the company is not performing continuously and people are exiting at drastic rates, if one is holding such stock be careful. Re analyze your stock once again and see whether it is still good to hold or sell it even at loss and exit before it is too late. Some investor says that group or people could misguide your opinion, but give a thought again and you decide. Either group or you could be wrong, be ready to accept it for your own good.
Balancing Fear and Greed: Many new investors try to find a multi bagger stocks which will give multi fold returns without considering the risk they are undertaking. Most of the good fundamental stocks would already be priced higher and they are safer to invest rather than poor stocks which available at discounted price. There is a good reason why poor stocks are available for discounted price and there are always more people ready to buy premium stocks rather than poor stocks.
Learn, Adopt and Change: Many investors brag about how much best return they have gain in short or long term gain but are not ready to disclose the loss they have made, but be honest to yourself. However we should learn, adopt the technique, change our existing technique and take time to analyse if you could have done it better. Eventually if one change and evolve one’s investing method, you should be able to lessen your loss from your investment. I observed that people do get free tips from friends or professional but they tend to ignore them.