Stock Market Learning Blog


Friday, May 15, 2020

why i am losing money from stock market ???

                                        What are the reasons to lose money from the stock market- when you are seeing the market movements and news have you heard the news like the market is bullish and bearish, the market is moving record high, Sensex is going all-time good like that etc……but why your portfolio is showing lose. Keep this thing in mind the market is going in a bullish trend but why you are in lose because you doing mistakes…

Here I am going to say about the common mistakes we do in stock market before going to explain I want to say one thing about me, whatever the articles I am writing these all are I learned and researched, when I am a beginner I faced this problem, once upon a time the market is bullish trend and record high but still my portfolio is not good some stocks are in minus movement.

And I identify those mistakes from my side and its ok now coming to the post there is a common mistake beginner and intermediate will do in before buying the stocks

  1. Lack of awareness and knowledge :

Before entering in to the stock market they don’t need the high knowledge and IQ but to have a basic knowledge about the market movements, why the market is in bullish and bearish, what are the pre-requirements to enter into the stock market, what are the things we want to learn before entering into the stock market.

This and all the pre-requirements and must and should know to enter the market.

  1. Hear mentality :

I have seen many of the peoples enters into the stock market with herd mentality, In generally all times you are hearing your  relatives are earning more money from stock market, and your friends are invested in some stock and getting huge profits then automatically you are mindset will change and you will blindly follow them, this is the main mistake till now many of the investors do, because investing in stocks is not a simple one, before buying a stock we want to do some groundwork like analysis if the company fundamentals, competitive advantage etc…

First, research the stocks and invest, if you follow blindly with others you may lose money because no one will care your money, they have their plans and strategies, don’t invest on tips.

  1. No-diversification :

This is a major mistake I also did, the great investor buffet says don’t put your all eggs in one basket, this is a thumb rule for all investors, don’t invest your all money in one company, the current scenario you will be very confident about your stocks if any bad news regarding to that stock you may lose your valuable money,

So you need to diversify your portfolio invest in 3 to 5 companies which is fundamentally strong and good track record, the golden rules says diversification can reduce the risk and maximize the profits at a time over-diversification can minimize the profit.

  1. Patience needed:

Patience is a key element to success in market and any felid, the golden rule of stock market transfers the money impatient to patient, most of the peoples buy a good stock and if that stock will be getting 20 to 30% to lose they lose their hope and sell it, if you wait and gave some time to that stocks means definitely will get a 40 to 50% profits and if you but a stock in good company give some time 2 to 3 years to that stocks you will get an ultimate returns in it, don’t focus on short-term market fluctuations.

Lack of patience needed and emotional discipline will need to enter into the stock market

  1. Trying to get money quickly :

             This is the first mistake while investing and entering in to the stock market, most of the peoples things want to make money fast, peoples always want   to be a rich investor like buffet  and you should see the history of buffet in stock market is real wealth (or) 90 per cent of wealth is created in is 50 only so lets see the buffet way of investing for a long-term

Don’t think to make money quickly even the buffet wealth created over the 5 decades see how long.

  1. Insufficient research :

most of the peoples are not doing sufficient research they invest their money based of tips and recommendations and believe friends and collogues that’s not a good investment strategy, in that  Before going to invest you should do some research like analyze the company fundamentals and past performance etc….

                         Hope its helpful

No comments:

Post a Comment