For a long time now share markets have been most desired and discussed investment path for Indians. But why it happens that more people fail with market investments? It is because they donít know how to trade in share market.
Share markets are not for everyone while this saying is correct, however it doesnít mean that one should not invest in at all. However, if you want to invest in share market in India, then you must keep in mind the following 5 mistakes to avoid to avoid losses and reap benefits.
Most important thing to remember is that is no such thing as timing the markets. Markets nowadays donít follow a trend that a common investor can understand. In general, you can say that due to some political or international event the markets may move up or down, but other than that one canít be sure that how much and when the markets will rise and fall. When starting investing, start small; go for a strong company whose performance has been consistent for a long term.
If you get free tips and blindly put your money in it, be ready for some serious shocks. Yes, you may gain at some point but following free online tips can be terrible and there are more cases of people losing money than earning by following free online tips. You must hire services of good stock consultant in India to keep loses minimal and earn huge profits.
Chances are you may have made good profits and as equity is known to give high returns during good market conditions; you may stand to gain a nice amount of returns on investment. If you have been lucky to gain on the markets by making some random investments, it is great. However, on that basis donít think that you know it all. Share markets are complicated and while nothing is impossible, you have to invest time to understand the markets. So, donít get overconfident and think you know it all.
If you have been investing in shares for a then you must be aware that ultimately prices average out and you may be able to get nice returns on your investment. However, this can result in holding on to dud shares, a common mistake while investing in stock markets. It is a good idea to book your loss and get rid of such duds that have not hiked even after a long time or else it continues to eat away the profits of your investment portfolio.
Equity is the best asset class to invest in, which gives inflation beating returns in the long run. Keep in mind- long run being the keyword. Short term gains may occur once in a while but chances of you losing out is also higher. So, look for the long term. Short term trading and speculations should be left for the experts or full time brokers. Long term investment will give you decent returns and therefore the investment mistake of trading short term should be always avoided.
wordpress theme by initheme.com