A stock is nothing but the ownership document of a particular company. A share is the stock certificate of a particular company. People invest in stocks to get large returns. After all, the whole point of investing is to make more returns, right? Moneymindz, India’s First Free Online Financial Advisory
Often, people take wrong decisions due to haste or ignorance. Thus they end up losing money after which they blame everything from stock markets to fate. This is not right. Investors need to check where they are going wrong. Here are some mistakes investors usually commit.
1. Not understanding what you are doing
Many investors commit this mistake. They don’t know what they are doing. They invest in random stocks without even checking whether they should invest there or some other stock is better. They don’t bother to do their research before going for an investment avenue. They aren’t aware of the risks they might face. It results in loss of their hard earned money. Then they lament. What’s the use crying over spilled milk? Moneymindz, India’s First Free On call Financial Advisory
2. No goals
Many people embark on life journeys without a goal. Sadly, some investors carry the same attitude while investing too. They don’t know their financial goals, what they want, how much and by when they want a particular return. They don’t realize the value of compounding; they don’t know Retirement Planning or keeping an Emergency Fund. They don’t have a Term Insurance. They haven’t even heard of Health Insurance. Basically, there is no goal. They are walking without knowing where the destination is, how long it will take for them to reach, etc. Have a goal in mind before doing anything, investing included.
3. Following the Herd
There is a psychological reason associated with this herd mentality of many of us. Back in the days of yore, there were predators. So it was essential for man to go together in groups and do exactly what the group did. Survival instincts dictate this in us. But today, the world is different. We are not faced with the dangers man faced back then. In such a scenario, is not necessary (harmful) to copy others or blindly follow others. But investors do this. They follow the herd without knowing what’s right for them. Thus they end up losing money. Smart Financial Advisor, Kuber Mindz
Another common mistake most investors do is not taking expert guidance. It is imperative to consult a financial advisor and take advice. For more information, you can always visit www.moneymindz.com or give a missed call to 022-62116588