Greed And Fear : Biggest Enemies In Stock Market
For Every Beginner In Stock Market Greed And Fear Are The Biggest Enemies. If You Are Investing In A Stock Be Clear About Your Investment Time And Return.
For Example, If You Are Investing In a 100Rs Stock, Be Clear About Your Target And Time Frame. If Your Target Is 150Rs Then Exit At 150Rs And Choose Some Other Stocks. Instead, Most Of The Beginners Will Think That It Came To 150Rs, So It May To Go 200Rs And They Will Hold It. But The Stock May Fall From 150Rs To 130Rs, Now Beginners Will Hesitate To Book Profits At 130Rs And They Wait Until It Reaches 150Rs.
Because When It Was At 150Rs They Didn’t Book Profits. So Now They Hesitate To Book Profits At 130Rs And Wait For It To Come To At least 150Rs. Like This Most Of The Beginners Get Locked In Some Stocks.
So Be Clear About Your Target Or Exit Price, Don’t Be Greedy.
The Second Most Common Mistake Beginners Do Is Exiting From A Stock Because Of 10-20% Fall. If You Are Investing For Long Term In A Quality Stock Don’t Be Afraid For 10-20% Of Fall.
In Stock Market 10-20%, Fall Is Common. So If You Are Investing For Long Term Hold It Even If It Falls For 10-20%. One Famous Quote Says That “Stocks Makes 90% Of the Move-In 10% Of The Days“. So The Longer You Hold The Higher The Returns.
Paper Trading
In the Stock Market Most Difficult Thing Is Trading, Trading Includes Intraday Trading, Swing Trading, Or F & O. Most Of the Beginners When They Enter Into Stock Markets, They Want To Earn Money Quickly. So Without Any Minimum Knowledge, They Start Trading.
This Is One Of The Mistakes Done By Beginners In the Stock Market. If You Don’t Know Technical Analysis And Starts Trading You May Lose All Your Capital Within Few Days.
So Before Trading In Stock Market, Do Paper Trading. For F & O You can Use OPSTRA. Do Paper Trading For At Least 2 Months Before Entering Into Stock Market, So That You Can Be Confident About The Trades You Take.
Start With Low Capital
A Beginner Don’t Know How To Manage Money In Stock Market, So Start With Low Capital. Even If You Know Technical Analysis And Fundamental Analysis Also, Don’t Trade Or Invest With Your Full Capital.
Because Even If You Know So Much About Stock Market, But Not Traded Or Invested Before Or Don’t Have Any Real Experience In Stock Market. You Will Do Lot Of Mistakes In The Early Stages Of the Stock Market.
So That You Will Learn From Your Mistakes And Rectify Them. So If You Start with Low Capital, And Add Some Amount Every Month. Even If You Make Any Mistakes It Will Not Hurt You.
And Also You Will Learn How To Manage Money In Stock Market. Instead Of This In Starting Only If You Trade With Huge Capital And If You Lost the Majority Of Your Capital. you Will Lose Your Confidence And At The Same Time, You Will Be Feared About Stock Market. And Will Not Trade Or Invest In Future.
To Start With Low Capital And Add Some Amount Every Month. In Stock Market Everyone Will Do Mistakes And Learn From Their Mistakes. So Even If You Do Any Mistakes, As You Are Trading With Low Capital. It Will Not Effect You.
The Famous Quote Of Warren Buffet: “Never Test The Depth Of River With Both The Feet”.
Follow The News Regularly
If You Are In Stock Market Then Following The News Is Compulsory Because Whole Stock Market Is Depend On News And Economy Of The Country. If There Is Any Announcement From RBI Then It Will Effect The Stock Market, If There Is Any Issue At Borders It Will Effect The Stock Market.
For Example If You Had Done Technical And Fundamental Analysis Of A Company Or Stock And Want To Trade Or Invest. And At The Same Time, Some Negative News Was Broken Out Regarding The Company Like There Was A Huge Fire Accident In One Of Their Biggest Manufacturing Unit.
But You Don’t Know About It And You Have analyzed The Stock Technically And Fundamentally And Entered In The Stock. As the News Broken Out, Immediately The Stock Will Fall Due To The Bad News.
If It Is Fundamentally Good Stock And Technically Very Bullish Also, It Will Fall If There Is Any Bad News About The Company. That Is The Power Of News.
News Will Effect The Stock More Than Any Other Technical Or Fundamental Analysis. So If You Are In Stock Market, Either For Trading Or Investing You Need To Follow The News Regularly.
Investment Or Trading : Be Clear
Before Entering Into Stock Market Be Clear For What Purpose Are You Entering Into A Stock. For Trading Purpose Or For Investment Purpose ?.
Most Of The Beginners Enters Into A Stock For Trading Purpose And Suddenly If The Stock Falls For 5 Or 10%. They Change Their Mind From Trading To Investing, In The Hope Of, In Coming Days The Stock Will Increase And Later In Few Days The Stock Falls Even More.
So Now As The Stock Falls, More And More They Change Their Mind For Long Term Investment And Hold The Stock In the Hope Of It Will Increase In the Future.
By This, You Are Not Only Wasting Your Time But Your Money Too, You May Get Better Returns If You Existed From That Stock In the Early Stage And Enters In any Other Quality Stock.
So Be Clear For What Purpose Are You Entering In That stock, If you Entering For Intraday Trading Then Exit From That Stock Either If It Is A Profit Or Loss. Be Clear About Stop Loss Before Entering In Any Stock.
If It Hits The Stop Loss Then Immediately Exit From Stock, Don’t Hold It In The Hope Of That It Will Rally In Coming Days.
Don’t Follow Others Blindly
Most Of The Beginners Starts Trading Or Investing Without Any Knowledge. They Just Want To Become Rich Quickly, So That They Enter Into Stock Market And Starts Investing By Others Calls Without Knowing Why Are They Investing And Without Any Knowledge About Stock Market.
There Are a Lot Of Fraudsters Who Are Ready To Make Cash From These Beginners, They Offer Some Paid Or Premium Memberships For Recommending Stocks. Don’t Fall In This Type Of Traps. Once Think If They Are Good At Stock market Then Why They Need To Offer Any Premium Memberships To Make Some Money.
So Do Research And Analysis On Your Own And Then Trade Or Invest. Or If You Are Investing By Seeing Any YOUTUBE Who Is A Trusted Person, Then Do Your Own Research About The Company Or Stock On Why Is He Recommending It. So That You Can Learn And Do Your Own Research And Invest On Your Own In Future.
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