5 MISTAKES YOU NEED TO AVOID IN SHARE MARKET INVESTMENT

500 Per Crore / Sep 28, 2021

If you're a beginner to the stock market, then its highly recommended for you to read through this blog as it will help you to be aware of the common mistakes that could be possibly avoided while trading in the share market. Share market is a trading platform where investors invest their funds to gain more valuable income but it do possess risk factors that can make you lose your investment. Hence, be backed up by a market expert like 500 per crore to trade safely in the share market.

                                                   

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In this blog, we've listed out five major mistakes that you should avoid while trading in the share market.

 

1. DON'T INVEST WITH MINDSET OF A TRADER:

First, you should understand the difference between a trader and an investor. A trader would have a mindset of 'buy' and 'sell' while an investor would have a mindset of 'buy' and 'invest'. You should adopt the perspective of an investor. If you're new to the stock market, it might scare you due to the markets volatility and cyclical moments. One of the major facts to act like an investor is that you should allow the company and its stocks the time to grow.

 

2. DON'T INVEST TO CHASE RETURNS:

While picking a stock, investors tend to chase returns that fetch more profitable income. But, this is not possible as the stock movements are cyclical. You should always analyze the company, its growth objectives, business prospects, management and other factors. Analyzing these factors will help you to choose the best performing stocks in the market. Remember, chasing returns is equal to blind investing.

 

3. DON'T INVEST ON A COMPANY BASED ON YOUR EMOTIONAL VALUES:

Since you're new to the stock market, investors would tend to invest in stocks based on their emotional value and popularity but these stocks do possess risk factors that could reduce your returns from the stocks. Hence, it's recommended to choose the stocks by analyzing the company's performance and growth in business.

 

4. DON'T PURCHASE STOCKS BASED ON RECCOMENDATIONS FROM YOUR LOVED ONES:

Invest in the stocks by seeking expert assistance from the market experts as they can help you to choose the best stocks based on the current market trends. The market experts would help you to choose the stocks by conducting technical and fundamental analysis. Remember, purchasing a stock based on the recommendations from your loved ones can tend to lose your investment

 

5. DON'T EMULATE A SUCCESSFUL INVESTOR'S PORTFOLIO:

Implementing an investing portfolio of a successful investor could potentially result in lose. This is because you don't know the entry point because knowing the entry point will help you to analyze the company's portfolio. While choosing the stocks you should forecast the exit point as it will help you to know when to withdraw your investments.

 

INVESTING IN THE STOCK MARKET IS BENEFICIAL:

Stock market investment is always beneficial as it allows you to earn a passive income but you should be cautious in choosing the best stocks in the market. Seek the guidance of the experts like 500 per crore to make your trade successful.

 

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