4th Jan 2019 | 16:00 PM IST
4th Jan 2019 | 16:00 PM IST
Investing in the stock markets to safeguard your future is easily one of the smartest decisions you could've made. However, the huge money-making potential of the stock market equals its potential of draining your wealth. Even a rumor in the stock markets is enough to cause a major decline in the prices of specific stocks. Before falling such situation, authentic and professional advice from the equity advisor is highly recommended. Investing in a specific stock, simply because most people entering that stock based on a rumor and exiting it based on another one, leads to loss-making choices.
In such a situation, we usually tend to blame the market for these losses instead of inspecting the main cause. So it,s important to figure out our mistakes and correct them with the help of professional equity advisor. The professional advice always helpful to accelerate investment performance in the longer run. Let's explore how equity advisor can help us to ace stock markets and correct your key stock market mistakes. Here are top 7 stock market mistakes and the solutions that equity advisor brings to you for correcting them.
The biggest threat behind your losses is 'herd mentality'. Many times investors tend to prefer the investment avenues which their neighbors, friends, and colleagues select. Each individual has their own requirements, risk appetite and aspirations, you should always keep yours in mind when deciding your financial strategies and planning your investments. Therefore, replicating the investment strategies of others might be harmful to you.
This is specifically a case with the novice investors, many of them expect a quick windfall of money. One must remember making money in the market is not a short-term game. One needs to have immense patience as well as understand the importance of compounding. If you observe the historical performance of stocks listed on the exchanges then you can clearly see that someone who's held on to their stocks for more than 3 years has bagged manifold returns. One of the most famous guru investors - Warren Buffet said: "Only buy something that you'd be perfectly happy to hold even if the market shuts down for 10 years".
Another big mistake every investor does in the market is - 'speculating'. It is very difficult to predict Indian stock markets as markets are dependant on various factors and it's nearly impossible to guess it perfectly at any point. On the other hand, it's nearly impossible to correlate the exact impact of the various corporate actions or activities on stocks. Speculating markets on own could prove to be a lethal proposition for your hard earned money as it would lead to huge losses. To speculate the market movement and interrelations of stocks one needs to have years of experience, market expertise, and acute financial acumen.
Usually, new investors borrow information from various secondary sources. In simple terms, people rely more on stock market tips. As a result of this, they end up making losses with outdated and vague information. Following the correct sources is critically important.
Another common occurrence - hearing somebody else's story of how they doubled their money by investing in the stock market, newbie investors invest all their savings which they accumulated over a long period of time from traditional investment instruments like fixed deposits, recurring deposits. The problem is they invest huge amounts in the particular stock or sector without any prior preparation and study.
This is similar to driving on a busy road with your eyes closed; the portfolio is bound to get messy. The overconfidence of having bought the right stocks further damages your wealth as you lose the opportunity of minimizing risks. Proper portfolio construction is an important aspect to create a winning portfolio.
We always want something more than what we have. Same with our investment. But while investing in the stock markets one always be clear about future price expectations based on the fundamentals and should be open for drift when its necessary. Many times investor often sit on loss-making investment with the hope of recovery. But one should always look at the potential opportunities to cover losses which is a thumb rule of investing.
INSUFFICIENT RESEARCH is the most prominent reason behind stock market losses. To make money, you need to thoroughly research the company, its financial, its balance sheet, loan books, expansion plans, and all other such fundamental aspects on top of everything else that can impact the stock. For eg: China's ban on graphite mining ended up boosting the sales of Indian graphite manufacturers, in turn boosting their stock prices.
The year of 2018 and the roller coaster ride and the market has already taught you many things. Stock markets are messy but still, you can make money if you are taking professional advice. If we donâ€™t repair our car on own then why we are trying to pull our investing vehicles.It is always better to get professional advice for your investment. Even we at Niveza offer you a unique equity advisory experience through our flagship product p360o(Personalised Research Service). Unlimited research desk access and a dedicated relationship manager are some of the key features of our service. A service guarantee is the most unique feature of our advisory service. The features guarantee you non-stop service until you make money with us. That is we take responsibility for your losses. All you need to do here is bring 2L capital and just relax and see your portfolio value soaring. The package also includes added benefit of ZERO BROKERAGE. To know more about our services you can reach us at any time at 1800-120-0671 we are there to ease your investing life.
Niveza Editorial Desk :
We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells...
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