Mistakes, Investors Should Avoid!

Hello guys, we are here again to share something with you that can be beneficial for you. As we all know, markets are uncertain and we don’t know what will happen in next minute. While trading and investing, people make some mistakes that they can avoid are as follows:

• Having no plan: - When you are entering into market, you should know what you want, without plan you are not able to take any decision regarding your actions and moves in market.

• Going with the financial media: - You should not blindly follow the trends shown by financial media as they are not favorable for everyone. You must believe in your own research along with the market trends and act accordingly.

• Not creating a portfolio: - Portfolio creation provides diversification which helps in lowering risks. If you’re having a diversified portfolio and one fund is not generating returns, then another fund can perform well and generate returns for you.

• Depending on the investment manager: - Indeed, investment manager is professional and knows the market too but you should take decisions as per your knowledge and research.

• Only investing in high proficiency securities: - If you are only investing in high proficiency securities then it is not a good decision because it is not possible that they remain always high and you can face losses further.

• Disposing stock when prices falling: - If a stock price is falling then the prices may rise in future but people starts disposing their stocks rather than waiting for improvement in prices. Buyers buy these stocks on low prices and enjoy the benefits from that stock in near future.

• Investing like gambling: - You should not invest in a security if you feel it is doing well, that’s gambling. But analyze and then invest in the securities.

• Assuming to be able to get same profit as others: - You should not assume that you will enjoy the same profits like others even if you follow the combinations of others.

• Being anxious or worrisome: - You must not look at trends every second as the falling lines can make you anxious and worrisome.

• Having no liquidity in portfolio: - There should be liquid securities in our portfolio because at the time of market crash, the illiquid assets will give us losses only, thus, liquidity is must in portfolio.

• Investing in short-term: - Investment is not a short- term game. It is done for long term. Hence, one should first differentiate between investing and trading.

• Investing without research: - If you want to invest then you must research because it is possible that if your knowledge is lacking then market can vanish all your funds.

• Getting greedy: - Being greedy can lead you to losses, if a stock is doing well and you keep on investing in that then at the time of fall you’ll bear losses.

• Investing in money that can be spared: - You should not risk all of your earnings in market. You should use your savings that you can spare after your expenses.

• Overtrading: - by trading a lot, an investor loses money in fees, thus, an investor should conduct few trades where one can diversify the risk.

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Thank you,

Yachana & Sahil