Dos and Don'ts in stock market Investing | Common Mistakes in Stock Trading & Investing

Dos and Don'ts in stock market
Common Mistakes in Stock Trading

Do’s of Stock Market Trading & Investing

1. In the beginning of stock market investing, focus on learning rather than on earning.

2. Always start with small amount of capital. After gaining knowledge and experience, increase your capital. Never invest all your money at a time.

3. Never invest all you money in one stock. Always diversify your portfolio across various sectors.

4. Start your investment early and be systematic.

5. Do fundamental analysis of stock before investing.

6. Always invest your surplus fund in stock market. Borrowed money must not be invested in market.

7. Patience is the key for success in stock market.

8. Always hold quality stock for a very long period to get compounding benefit.

9. Hold the winning stocks and don’t hesitate to cut the loosing stocks.

10. Last but not the least, have faith in Indian Economy.

Don’ts of stock market trading & Investing (Common mistakes while investing in stock market)

common mistakes while investing in stock market
1. Investing is not gambling: Majority of people in our country considered investing in stock market as gambling. They enter into market to become rich over the night. But one must understood that investing in stock market is a pure business.

2. Avoid tips and recommendations: Instead of doing own research, people invest blindly in stock market on the tips and recommendation of other which can cause huge losses to the investors. Always do your own research while investing in stock market.

3. Unrealistic expectations: Multiple time unrealistic return in a very short period is one of the causes of losses in stock market. One must understood that growth in share price depends on the profitability of the companies. If the profits are growing at the rate of 20% per annum, one must expect 200% return a particular stock.

4. Beware of beast of stock market: One must not enter into such stock whose financial position is unsound and which can be easily operated by the operators.

5. Avoid over trade: Over trade in stock market must be avoided. It can cause huge losses. Not making losses is also very important in stock market.

6. Don’t fall in love with any stock: Investors must not fall in love with a particular stock.

7. Last but not the least, use your own mind and knowledge while investing in stock market.