Common mistakes in share market

Hi all
I often used to hear from some persons that share market is a gambling and one should not invest in share market because one can lose all of his/her money in it. Yes, There is some risk involved, but the whole thing is not true.

This is only said by those who cannot take risk in their life. But I believe that only those persons who take risk in life, get success in life.

All great persons in this world had taken a risk sometime in their life and this is why they had reached at a higher level. I tell you a story of my close relative . Working as a scientist in central govt, he had great interest in share market and resigned from the job and devoted whole time in Indian stock market. Today, he is earning like anything.

This does not mean that I advise you to resign from your job, but you can devote some part time in it and can earn a lot.

There might be other examples of similar kind also and these examples serve as a motivating factor for us.

And, there might be other persons who might have lost their hardearned money in it. Yes, there are always two sides of same coin, but it depends upon you ,how much risk, you can take.

There are some common mistakes which are done by retail investors and they get trapped in it. Some of these mistakes are

1. We always invest in the times of bull run in market thinking that it will continue. Bull run means that we speculate that the price of a commodity or derivative will increase in future.For example, sensex rises to 300 points in a day and a particular stock rises by 5-7% in a day. We invest thinking that the trend will contnue and next day the market crashes and we get trapped.

2. We dont hedge our position and this contributes to further loss in share market.

3. We invest all of our money in a single stock and when that stock falls, our money gets trapped.

4. We believe in rumors and invest our money based on rumors and got trapped.

So, these are some of common mistakes which we perform and lose our hard earned money. In this blog, I will give advise on some fundamental strong stocks . And I will give entry and exit levels for a particular stock. You can follow these and can earn a good amout of money in stock market.


Disclaimer: The ideas given here are my personal views only and there is a risk of loss of money in stock market and one should act on these views at their own risk and responsibility.