Most beginners in stock market are dreamers, who always sees people around them turning rich. People discuss on stock market trades like Facebook feeds, only talking about their success stories. If you are one of them and planning to entering stock market avoid below mistakes or assumptions.
- Power of Compounding : Popular miss-selling technique used to market equity. What is Compounding ? It is the ability of an asset (your money) to generate earnings, which are then reinvested in order to generate their own earnings. PPF / FD are famous compounder. First, understand what expert says in this video and then decided : http://destyy.com/wNuDBa
- Selecting brokers based on ads: During my initial days of trading in stock market I had made more money for my broker than myself. It was due to lack of brokerage knowledge and also because brokerage is charged on both profitable or loss transactions.
- F&O trades: Futures and Options trades are techniques which need expertise. People doing trial and errors in it are usually found selling their and their ones asset to repay losses.
- Trading on Margins: Margins can help you generate higher profit and higher losses too. So use it wisely, personally I would suggest to avoid it.
- Not understanding benefit of SIP: Systematic investment plans helps you to invest a fixed amount on monthly basis. This help you to generate a huge corpus for long tenure goals. (Rs. 2000 invested monthly for 30 years can generate Rs. 1.3 crores @15%). Check this link to plan your SIP: http://festyy.com/wNoyZR
Share your views in comments below and let me know if your need more explanation on any of the above points. Also, if you have any questions in mind do ask them in comments.
Related Post:
Common mistakes in stock market - Traders & Beginners
Reviewed by Abhishek Mallya
on
March 19, 2019
Rating:
Reviewed by Abhishek Mallya
on
March 19, 2019
Rating:
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