Stock investment requires unique strategies at different time. But, you need to avoid common mistakes in stock market every new investor makes.
These mistakes are often repeat offenses that adversely affect your investment goals. Stock investors continue to make those investment mistakes either intentionally or unintentionally.
According to a post published in Wall Street Journal, investors still buy funds and sell at the wrong times, especially in volatile markets.
A smart investor can become well aware of these typical errors in advance & take all necessary steps to avoid them. Once you get succeeded in controlling your emotions, you can guarantee solid returns in stock markets. Here are 10 common mistakes every beginner or newbie makes in stock markets:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]
(1) Investing Without A Solid & Written Plan
It is one of the most common mistakes in stock market every new investor makes. Several investors rush in stock market without setting their investment goals & objectives.
You should set aside only a part of your total investment for stock markets. You should also divide your total stock investment into different options.
Some of the popular investment assets include national stocks, international stocks, bonds, mutual funds & many more. Your asset allocations should be in such a manner to safely accomplish your goals with reasonable risk.
You should diversify your portfolio into each asset allocation. Volatility should never be a meaningful risk to your investment. However, rising inflation can put risk to your stock investment.
You should not go for investing in stocks just to beat the stock markets.
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