Why Most Retail Investors Having Loss In Stock Market.
Hi,
Here we discuss today some basic mistakes which is doing by retails investors major points are given below make sure you all must avoid these points and increase your knowledge into stock market.
1-Low Price Stock Selection:
In stock market when any newbie (new investor) comes into market he/she always tried to buy more and more stocks like they can buy 1000 stocks on 4 rs. price but they never buy 10 stocks on price 400 because they wants no. of quantity they do not understand quality of stocks.
2-Catch Fallen knife (Falling Stocks ):
Retail investors always trying to pick which stock crashed more than 50% and they want to buy such type of stocks without knowing the reasons why that stock falling on daily or monthly basis.
3-Keep Averaging Bad Quality Stocks On Every fall :
Retailers always doing this things frequently When they buy any stock if that stock fall badly in single day then start buying into that stock without knowing even falling reason and keep adding that stock and resultant they stocks became penny stocks and there money stuck there .
4-Never Try To Cut There Losses :
If a stock falling due to bad reason or company converted from good to bad they never think to book there losses and either they hold the same quantity or start adding that stocks.
5-Never Try To Manage Their Risk :
Never try to make good and balance portfolio with good quality stocks ,Someone pick most of the stocks from auto sector and some one pick mostly from nbfc sector....
6-Never Evaluate Their Portfolio on Six Monthly Basis :
Retail investors always watching there portfolio on either daily basis or weekly basis and as resultant they are addicted of frequently trading which is one of root cause of there losses ..
7-Re balancing Portfolio Or Portfolio Management :
Most of the investors never sell bad quality stocks from the portfolio and do not understand if they sell bad quality stocks and with the money after selling bad stocks they can invest into good quality stocks which can give them profit after staying invested into good quality stock.
8-Never Updated :
Whenever any important updates come out retailers know always in very last if they are updated then they can save there a lot of money into stock market ...
9-Never Buying Quality Stocks on Corrction :
Retail investors never buy quality stocks if some how they buy good business stock then due to lack of patience they did not hold that stock and when on negative situation into market they never buy strong business ..
10-Avoid Experts Services :
Retail investor do not take any sebi registered or quality pms services by which they can save there hard earned money and can make a decent return over the time period .
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Valid points made here.. Everyone wants to earn big but very few follow the right process. Appreciate your positive intent to educate investors and providing them with the useful content. Thanks.
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