9 Mistakes Every Investor Makes | Why People Lose Money In Stock Market?

Stock Market: Strategies, Pitfalls, and Solutions

Investing in stocks can be thrilling yet challenging. Many investors face hurdles like timing the market, emotional attachments to companies, and neglecting diversification. Let’s delve into these pitfalls and ways to overcome them.

Timing the Market:
Trying to predict market movements is risky. Instead, focus on long-term investments. Regular contributions and diversification can help mitigate market volatility.

Not Understanding the Business:
Investing without understanding a company’s fundamentals is akin to gambling. Thorough research is crucial. Analyze the business model, financials, and industry dynamics before investing.

I Love the Company:
Emotional attachment can cloud judgment. Base investment decisions on objective analysis rather than feelings.

Averaging Down:
Buying more shares as the stock price drops can be tempting, but it can lead to further losses. Reevaluate the investment thesis before averaging down.

Tunnel Vision: My Price, My Portfolio:
Focusing solely on target prices or allocations can lead to missed opportunities. Stay flexible and adapt to changing market conditions.

Looking Only at Stock Price:
Stock prices may not reflect a company’s true value. Conduct fundamental analysis to assess a company’s health and prospects.

Penny Stock Speculation:
Investing in penny stocks can be risky due to volatility and speculation. Allocate only a small portion of your portfolio to speculative investments and conduct thorough research.

Allocation Problem:
Proper asset allocation is crucial for managing risk. Diversify across different asset classes and sectors to optimize returns.

Waiting to Get Even: The Biggest Blunder:
Holding onto losing investments indefinitely can hinder portfolio growth. Cut losses and reallocate funds to better opportunities.

How to Mitigate:

Why Are You Even Doing This?:
Align your investment strategy with your goals, time horizon, and risk tolerance.

Automate: Implement automatic investment plans like dollar-cost averaging to maintain discipline.

Play Part: Stay informed but acknowledge that not every market movement can be predicted. Focus on disciplined, diversified, long-term investing.

In conclusion, understanding common pitfalls and implementing mitigation strategies can help investors navigate the stock market more effectively, increasing their chances of achieving long-term financial success.

_______________________________________________
New Account opening link :

_______________________________________________
#financeboosan #stockmarketindia #investing
Stock Market, Mutual Funds, Investments, Personal Finance, Make Money Online

[daniel]

Great video Boosan... I have made all these mistakes...What I have learned
1) Never to buy individual stocks..I am not smart enough in finding the valuation of stock .
2) Timing is not possible..However lumsum investment is very risky...Nowadays I don't buy more than 2% of my portfolio. Max is 4% that too if market is bullish.
3)Not to hold more than 2 funds in each category . Why 2 funds ? because any fund can turn rough (Lessons from UTI Flexicap )
4) Not to hold more than 7 funds in total.. Make sure there is no overlap
5) FD and bond exposure is not bad. 20-30% in these can hedge equity.
6) Not all Index are good ... (Ex Nifty next 50 has gone under water for 3 years or more)
7) Do not be afraid to exit with This confidence can only come if your exposure in any fund is less than 15%....
8) Believe in Nifty 50 ... Yes the 15 year rolling returns may be 9-10% however it can be a great hedge for other more volatile funds (Midcap and smallcap)

[narayanansreenivasan]

Don’t try to avoid these mistakes and think you are smart.. just make these but do learn fast from your own mistakes..

[PraveenKumar-zven]

இன்னைக்கு தான் உங்க வீடியோ பார்த்தேன் அருமை. Bajaj fianance எனக்கும் இப்படி தான் நடந்தது

[ananthavelrajaramakrishnan]

வாழ்க வளத்துடன் நலத்துடன் பல்லாண்டு குடும்பத்துடன் சகோதரரே🎉

தாங்கள் வெளியிட்டுள்ள காணொளிகள் அனைத்தும் அருமை.

ஒரு வேண்டுகோள்!

தாங்கள் குறிப்பிட்ட படி
1) GROWTH stocks கண்டறிய தாங்கள் குறிப்பிட்ட நுணுக்கங்களை உள்ளடக்கியபடியான ஒரு screener link தனியாகவும், 2)Value stocks கண்டறிய தனியாக ஒரு screener ம்,
3) under valued stokes கான screener தனியாகவும் தங்களுடைய காணொளியின் கீழே கொடுக்குமாறு கேட்டுக் கொள்கிறேன் நன்றி 🙏👍.

[globetrotter]

But Warren too thinks it's not good time to enter market as it is in a bubble (irrational exuberance). Nobody cared for some of the psu stocks for 75 years and their prices have become > 10X. Bloody crazy times. Irrational exuberance. It is better not to enter the market until a 10-20% correction, but stay the course with the existing investments.

[kannanpalaniyappan]

you are talking continuously without giving a break, please keep give some stops and starts. Feeling like watching a shorts

[jothidarvelmurugan]

மிக்க நன்றி. வாழ்த்துக்கள் சகோதரரே வாழ்க வளமுடன்.

[SuperSenthil]

Bro, Bajaj Finance pathi neenga sollumpothu enaku Jio Finance gnabagam varuthu. Naan 210/- rupeesku 50 Shares vaangunen ippo price aeritte iruku, enaku Jio Finance vaanganum nu aasaiya iruku but rate koraiyala😮 Naan ippo Jio finance vaangalama??

[sebiosj]

best way to invest to split the money in index funds - nifty 50 index fund - 40%, nifty next 50 index fund- 30%, top 250 small cap index fund - 30%

[gemsatheesh]

Excellent Boosan..as usual..Kalakkureenga...hats off..❤

[KeyswithKrish]

Hai bro. Could you please make a video on how NRI’s abroad can start their investment journey in India. I suppose you are in Netherlands & I think you are the right person. I follow your videos and I like the way you explain everything with excel sheets.

[shanonprasanth]

Hi bro, can i invest below mutual fund for sip please tell
Quant large and mid cap direct growth - 1000
Quant flexi cap direct growth - 1000
Nippon India growth fund direct growth - 1000
Nippon India small cap fund direct growth - 1000
Uti nifty 50 index direct growth - 2000
Motilal Oswal large and midcap direct growth - 1000
Nippon India multi cap fund direct growth - 1000
Quant small cap fund direct plan growth - 1000
SBI long term equity fund direct growth - 1000

[dinagarana]

Wow, This video shows your personal experience, efforts and dedication. Thank you for summarizing it. you have a long way to go. Good work, Boosan!

[gurulakshmi]

ஆம் ப்ரோ என்னுடைய நாமினி நேம் ல ஒரு சின்ன கரெக்ஷன் இருக்கு அதை எப்படி சரி பண்றது

[yogeshsdme]

An eye opening video bro, thank you so much for making this video, I've done many mistake said in this video I'll correct myself in further investment, ❤❤❤❤❤

[wealthcreatorstamil]

Boosan, Try to make a clear video on Momentum Funds. Those have high levels of returns on longer time periods. Kindly make a comparison video on that. ❤

[harshavarthank.g.]

Please konjam replay pannunga anna
Anna enakku oru doubt ipo one indexfund one flexicap one midcap apidi pandrathu bettera illana largecap, midcap, smallcap apram index intha mari pandrathu bettera anna ethu anna better and safe konja sollunga anna instead of investing large, mid, small I use flexicap is bettera?

[SamyugthasKitchen-oitm]

Quant flexi cap direct growth sip podalama sir

[godgodgod]

எதனால் ஷேர் மார்க்கெட் வீழ்ச்சி அடைந்துள்ளது கடைசி பத்து நாட்களாக?

[aadhav]

Bro as ur information tmb is dangerous stock aha public holds more than 90 percent