Trading decisions in the equity markets need to be backed by proper research. However, most retail investors do share trading based on rumours, speculations, tips or random picks.
Some common mistakes made by investors:
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Lack of Patience:
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With a view to gain short-term returns people lose patience and sell the stock before they have earned a substantial returns.
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Emotions:
Being emotionally attached to wrong stocks, investors do not switch to better stocks.
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Lack of knowledge:
Lack of necessary knowledge required to choose the right stocks to invest.
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Risk Management:
Investors are unable to have the correct risk return strategy which can lead to substantial losses for the investors.
To avoid such pitfalls, investors need to research the markets before trading. This is easier said than done and if one is a novice investor, it will probably be very difficult for the investor to do it alone. The guidance of an experienced stock broker can help you make the right investments.We at Angel One, are committed to guide you in avoiding these mistakes which will ensure you invest in the right stock at the right time.
