Mistakes People make in Stock Market

One of the ways for not making any mistake is know the mistakes of the people. This post is about the mistake people make in stock market.

The mistake people make in stock market can result in great loss of money.

So the mistake in stock market are:

No Plan: People invest in stock market without even giving a thought about their next action. They just invest, without thinking about there exit strategy, what will they do if the stock loses money. Give thought to these kind of questions and make a concrete plan. One more thing no matter what, Stick to the Plan!

Investing more money when the Share is at the top: If the price of a is up, please do not invest in that share. I know you are a human and you want to earn some profit in the stock which is up. But if the stock is at the top, it has only one way to go down.

Taking out money when the stock is Low: When the stock is low, it is not the time to take out money, but it is the time to invest more money. Because the market will go up after this.

Not Diversifying: Diversification is the most important thing to decrease the risk. People do not diversify, thinking that the stock they select will always go up, but it ain't so. Allocate certain percentage to each share, bonds, debt etc.

Not Reallocating: Reallocating is also very important. We have to reallocate our money in different stocks to insure that we stick to our plan.

Thinking that if the stock is up, it will only go up: This thought is harmful, not only thing which is up will go only up.

Trying to beat the Market: People try to beat the market. No one can beat the market. The market always win. If they have beaten, it will be temporary only. Make market your friend and move with it.

Investing for Short Term: Do not try to invest for short term, you will lose. Surely you can win short term, but ultimately you will lose. Always keep your eye on the long term investment. Thats why patience is important.

So, please avoid these mistakes.

Thank You

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