Thursday, 8 January 2015

5 Most common mistakes people do in Stock market while trading


Avoid these Mistakes for your own good !!

Panic and make sudden decisions - You know that Stock market fluctuates a lot. If the costs of your shares have plunged, there is no reason there is no reason for you to get rid of them in hustle. Hold on to them if nothing fundamental about your company has changed.

Buy huge number of shares in one stretch – when the market price of shares is going down, feel free to buy some stocks. At the same time, do not invest big money. Purchase shares in Stages. Because no one can time the market

Buy Stocks from one concentrated sector When it comes to stock market, diversification of trade plays very important role in improving the reward and minimizing the risk. So, make sure you are invested in stocks of various sectors.
           

Ignore Expenses - When you buy and sell shares, you will have to pay a brokerage fee and a Securities Transaction Tax. This could nip into your profits especially if you are selling for small returns (where the price of stock has risen by a few rupees).

Ignore Stoploss – Stoploss is to prevent the trader from big loss. It is must while trading in Intraday (Read here, why put a stoploss?)

No comments: