5 things to avoid in stockmarket
The stock market Is a mixture of profits and losses. We do lot of analysis and we apply different techniques and methods for getting profits. But some times we get losses. To avoid getting huge losses, You should avoid doing certain things in your stockmarket career.
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1. Don't Follow tips
2. Don't speculate
3. Don't invest needed money
4. Don't follow others
5. Don't invest in penny stocks.
If you want to continue your successful journey in the stockmarket. Try to avoid the above mentioned things. Here is the explanation in detail (Why you should avoid these things?)
1. Don't follow tips:
Now a days there are lot of people providing tips about stockmarket through different mediums. You should be careful while following them. Because they will provide tips from their own perspective. The goals in the stockmarket will be different from one another. Some one do intraday trading because he/she wants to get profit in the same day. Someone invests for longterm. So target's of each and every person will be different. So do your own analysis. If you are a beginner you will learn a lot of things in your journey. If you follow tips given by others you will not be able to learn. Instead of blindly following their tips you can do your personal analysis on those tips then you can proceed if every thing is okay.
2. Don't speculate:
Speculation leads to unrecoverable losses. Sometimes trades taken through speculation will give you money but most of the times there is more probability to lose your money. Most of the analysts try to predict the future but it don't work all the time. So as an investor you should be careful while taking your investment decisions either it may be for short term or long term.
3. Don't invest needed money:
When coming to stock market there are no assured returns or guaranteed returns. It all depends on the market conditions. If the market conditions are good there is more probability to earn profits. When you invest your hard earned needed money in the stockmarket hoping for profits. There is a chance for getting losses also. So try not to invest your money especially in underperforming stocks.
4. Don't follow others:
As we discussed in the beginning the thought process and targets of each and every person in the stockmarket will be different. Some big investors will invest their money with a target of 10 years and more, Is it possible for a day trader to follow that big investor?, the answer is absolutely no. Here the targets of two persons are entirely different. So try not to follow others. Your own decisions and your style of trading will help you reach your personal targets. Even the big investors will say following others is not a good option.
5.Don't invest in penny stocks:
Penny stocks are available at low prices. Because those companies will not have good fundamentals and also strong growth potential and also strong management. Think once, If those companies have good fundamentals and strong growth potential will they stay at low prices?. Sometimes penny stocks also give huge returns for investors. But most of the times penny stocks fail to fulfill the expectations of investors.
Thank you for your support and encouragement through reading our articles.
Thank you for your support and encouragement through reading our articles.
