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Mistakes in stock market why

Mistakes in stock market why

stock market is a platform to creat wealth in longer term . It’s give superb returns . You will get up to 10000% returns in quick time . Why 95% people fail and lose their money in stock market here are couple of reason ..

1. Invest in penny stock.. new investor come with little capital and find stocks with low penny they thought 1 bucks or 2 bucks price stock buy and after some time it will reach 10 bucks I become an millionaire..Ha ha ha but they don’t find why these cheap scrips are available at cheap price . They just put money and burnt there hard earn money..

2. Evarage out . Some people make positions in a stock but price is fallen badly they put more money to average out . But stock fallen badly from that level too . So please don’t average your position while stock price are  down .

3. Leavrage and margins.. new people take huge margins and leavrage to make big position but most of the time they stuck in it make big loss. So please don’t take margins and leavrages.

4. Sentiment. People must have to control their sentiments . When someone make loss in one company he wanted to cover loss from same company . in this situation he made mor loss. So try to control sentiments 

5. Not putting stop loss.. stoploss prevent you from biggest losses people not putting stop loss even their holding down more than 50% they are hope that one day it will come to our price . But that day not come . So stop loss is necessary . After your investment down more than 10% exit from it and invest in other good company.

I am a trader or investor? People can’t understand their role sometime they become trader when portfolio in green and when portfolio in they become investor. So be clear what actually you are .

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