Investing Money in Stock Market is not an easy job. There is lot of research and study required to find the best stocks from the market. But still after lots of hard work, Investors may fell prey to the following mistakes. So lets have a look on it and avoid it.
Lack of Knowledge :
Lack of necessary knowledge required to choose the right Stocks to Invest. One must know the finance and the balance sheet properly before investing into the stocks. Many times investors buy the stocks which were recommended to them via SMS without knowing the actual source and company fundamentals.
Lack of Patience :
With a view to gain short term returns , Investors lose patience and sell Stock before they have delivered substantial returns. The Market may be volatile but always Patience Pays Off.
Some times we get emotionally attached to few stocks, practically that is not a good practice. If the stocks goes down , then also we keep a hope that it will go up instead of exiting at that time. Thus, Being emotionally attached to wrong Stocks they do not switch to better Stocks.
Risk Management :
In the Stock Market there is a risk on each and every step. We need to manage it properly to gain good returns. One Investor must strictly follow the Stop Loss and the target made by him to achieve good gains. Where as Investors are unable to correct risk vs return strategy which can lead to substantial Losses for the investors.