1.) Indian consumers are great at bargaining items in the shopping market and finding great deals but when it comes to stock market they are not always value minded .Please do your homework before investing in any Stock,Commodity or any financial instrument.
2.) Behavioral mistake thinking that In front of the trading screen,you are a better stock picker or a gifted person with special power ,its not the reality .
Pick stocks on the basis of analysis and due diligence.
Its your hard earned money.
Do not getting emotionally attached with stocks.You have EMOTIONS but Stocks/Companies, they don't have any.
3.)Constantly moving money around is costly and ill advised and at the same time a set and forget it can be just as damaging.
Give some time to stocks decide what you want short term or medium term gains or long term gains do profit booking accordingly then re invest in market.But generally Ideal is hold it for medium term atleast,long term will be great but donot forget it completely keep yourself update with whats happening in the companies of which stocks you hold.
4.)Buying whatever is performing well thinking they have missed on something and buying at higher prices like people buying gold and silver at higher prices few years down the line their investment has gone down as much as 50% , a classic example of Asset bubble.
Buying something which has performed well in past very few times its a reason to buy but assuming that share will rise because it has in past is road to ruins.
5.)Don't focus on one sector ,DIVERSIFY is the key Complete absence of Diversification can be a painful experience.
6.)Don't rush in,building positions on stocks ,keep cash in hand,invest in more measured fashion
7.)Last but not the least DON'T GIVE UP-Most common mistake is giving up and closing down their investment after a bad start.The key is not to make same mistake again and keep an open mind.
2.) Behavioral mistake thinking that In front of the trading screen,you are a better stock picker or a gifted person with special power ,its not the reality .
Pick stocks on the basis of analysis and due diligence.
Its your hard earned money.
Do not getting emotionally attached with stocks.You have EMOTIONS but Stocks/Companies, they don't have any.
3.)Constantly moving money around is costly and ill advised and at the same time a set and forget it can be just as damaging.
Give some time to stocks decide what you want short term or medium term gains or long term gains do profit booking accordingly then re invest in market.But generally Ideal is hold it for medium term atleast,long term will be great but donot forget it completely keep yourself update with whats happening in the companies of which stocks you hold.
4.)Buying whatever is performing well thinking they have missed on something and buying at higher prices like people buying gold and silver at higher prices few years down the line their investment has gone down as much as 50% , a classic example of Asset bubble.
Buying something which has performed well in past very few times its a reason to buy but assuming that share will rise because it has in past is road to ruins.
5.)Don't focus on one sector ,DIVERSIFY is the key Complete absence of Diversification can be a painful experience.
6.)Don't rush in,building positions on stocks ,keep cash in hand,invest in more measured fashion
7.)Last but not the least DON'T GIVE UP-Most common mistake is giving up and closing down their investment after a bad start.The key is not to make same mistake again and keep an open mind.
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