SHARETIPSINFO >> Articles Directory >> The 10 Worst Things You Could Do Now in stock market
There is no doubt about the fact that we are going through the toughest time as far as the global economy is concerned. Stock markets around the world are seeing downturn for the last few months. At this tough time you have to be more careful to avoid any mistake at stock market. Here we are pointing at 10 such common mistakes that you can do now to make you aware oft them.
- Shedding away from investment – Do not stop investing in the down market. Remember this is a good time to make some smart investments as the down trend is not here to stay permanently.
- Selling stocks in panic – Do sell out stocks in panic. It is good to get the profit but do not just sell out the winning stocks at a go. Hold some of them for the long term as well.
- Holding stocks that are falling – If price of certain stock is falling steadily then do not expect it to bounce back one fine morning. So better sell of the stock to reduce the loss and invest the money to somewhere else.
- Copying others – This is the biggest mistake you can do at stock market irrespective of the time and trend of the market. You need to follow the market, do your analysis and then take the investment decisions.
- Following your broker blindly – Do not do any trading simply because your broker recommends you to do so. Remember that you should absolutely confident about all the trading decisions that you take.
- Taking chance with penny stocks – You can not afford to take risks with the penny stocks at this volatile market. Always invest in fundamentally strong and large cap stocks.
- Not staying focused on investment – Do not loose focus from the market as the trend is down. Stay focused to the happenings at the market and all your investments.
- Trading too much – Do not do trading simply for the sake of trading. You have to be absolutely sure of profit and asses the risk before trading.
- Thinking only short selling – Though short selling in this market will give you profit. It is not wise to do only short selling in this market. You need to make some potentially good long term investments that will give you good return in the future.
- Predicting the end of downturn – Do not try to predict the end of the downturn and decide on your trading decisions based on that. Make good investments at fundamentally strong stocks and your investment will get you good return eventually.
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