Common mistakes to avoid in the Stock Market

People sometimes tend to do some basic fundamental mistakes while trading in the stock market.They usually end up in loosing some of the their money before realizing their mistakes.We’ll have a look at some of the common mistakes,so that we can learn beforehand and avoid such situation.

Mistake 1 -Lack of stock market knowledge

Many people directly start trading in the stock market. They do not even bother to gather some basic knowledge of the stock market and expect to make money from the day one.You should always know about the basics and fundamentals of the stock market before actually heading into it.

Mistake 2 – Trading with borrowed money

Never ever start trading in the stock market with the borrowed money in hope that you will return it back after making some good profit.Always start with your surplus money and surplus means even if you lose that money, it should not affect you and your family’s life style.

Mistake 3 – Investing all your money at one go

You should not invest all your trading money in the market at one go.Instead you should invest it at certain intervals.

Mistake 4 – Unrealistic expectations from the stock market

Some people start trading in the stock market with the thinking that they will become millionaires and billionaires within a very short time.They expect to make huge profit from the day one and usually end up loosing their money in the market.
You should always be clear from the day one that making money in stock market requires same qualities as required in other aspects of life eg.hard work,intelligence,patience etc.

Mistake 5 – Panicking with the bad news

In case of bad news or with a sudden fall in the stock price many investors start selling their stocks.Always remember not to panic with the bad news.Carefully analyze the situation and then take any step.

Mistake 6 – Holding back your bad investment

Never ever hold back you bad investment for very long with the expectation that you will recover you investment with time.Instead get out of it and use the same money in some other stocks.You can read more about this here

6 Responses to Common mistakes to avoid in the Stock Market

  1. G.D says:

    I am using moneybhai’s virtual trading platform from one month.
    I am only investing in famous and running in news companies.
    How would I start using market fundamentals ?
    How would I research to invest tomorrow ?
    Should I start real trading as I start gaining in virtual market ?

    Thanks
    G.D

  2. Alok Kumar says:

    Sir, can we be able to buy or sell, when in lower & upper circuit. What is the meaning of the term ‘circuit’. What will be the position of the particular stock, if brought in Interday Delivery & ‘circuit’ persists at the exact time of closing?

  3. Madan says:

    Hello Sir,
    I want to start the day trading from my own demat n i want to know that if i buy a lot of 1000 share for rs 100 each then the total will be 1000*100=100000 …. whether i have to pay all the amount or i will pay only 1% of the total amount.

    thanking you

  4. devang says:

    thanks for the post, it was informative indeed.

  5. Shankar says:

    Hello Sir,
    Information given is very useful. Thanks for the article.
    Could you please let me know where can I find the knowledge of stock market. I mean, there is a huge amount of information available on internet but I am not sure what is important for me. Kindly guide me.

    Thanks
    Shankar

  6. Akash says:

    A very informative article indeed.Infact I did some of the mistakes mentioned above ,that is why i can relate to your article.

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