“Investment,” “Stock market today,” “Multiply your money,” and “High Returns” are the few phrases that make every new investor gleams and tempt about. Every new investor wants a high return, which is not wrong, but an immediate high return is something that every new investor dream of, which is the first big mistake they make.
There is a basic difference between a trader and an investor. Trade is all about buy and sell. You get an immediate return. If you entered as a trader in the stock market, I would say this is an incorrect market for you!!
When I was new, I made some terrible silly mistakes; when I today look back, it seems that every new investor will go through that path if they are not guided properly.
What’s the use of your knowledge if you cannot benefit others. I have listed some of the major mistakes that every new investor make, which I had made:
Never Enter With a Trader Mindset
Fellas, never enter the stock market with a trader mindset. You have to enter with an investor mindset whose vital sutra should be “buy & invest.”
Say, if you invest money before the pandemic in the stock market, there is almost a 25% drop in Sensex and Nifty. If you think that I am undergoing loss and withdrawing money is best, this is not what investors do!
Investing in the stock market means investing for around 7 to 10 years for visible money difference and a great return.
Don’t Chase Return
Chasing return while selecting a stock is also one of my silly mistakes. If you want to invest, you must do a thorough study of the company. Just because the company is running well, it is not always a good reason to invest.
It is essential to do proper research about the company, i.e., its growth objective, business model, management, and other factors.
Chasing returns is equivalent to blind investing in the stock market.
Never Get Emotionally Involved
The biggest problem, “Emotions”!!
The company is huge!
It has a reputation!
Investing in big firms will have good returns!!
As soon as you get emotionally involved in a company, you start ignoring red flags. You start ignoring the market and stop thinking practically.
Red flags ignoring means ignoring the company’s quarterly performance if the NPA(Non-performing Asset) is going up if there is any abrupt exist of any senior leader of the company.
All such things need to be observed keenly.
Recommendations are good, but only from EXPERTS!
The stock market today is changing; such drastic changes will always be a part of the market. The market will fall, the market will rise, but the success key is to understand these changes. Investing in such a drastic scenario can either be beneficial or not.
When you are new in the market, it is best to listen to recommendations. The tricky part is from whom?
It is always advisable to take advice only from the expert. Understanding the market condition from relatives or friends can never be beneficial in almost scenarios.
Always ASK EXPERTS!!
Emulating a successful stock investor’s portfolio!!
Reading motivational books, understanding the stock market written by an expert broker is good to take only motivation. But imitating each and every step is never feasible to grow in the market.
Never imitate others without understanding the full scenarios. As you are new to the market, just following anyone blindly is not an option. Invest only after understanding the pros and cons.
These mistakes can lead to a big fall, and after some time, you may realize your irresponsibility.
Folks, investing is a bit tricky but also fun once you understand all scenarios. It is good to fall, but always have a way to stand up. These mistakes can be avoided easily only if you analyze the market correctly.
Stay patient, stay consistent, and enjoy the grill!