Mistakes I Shouldn’t Make as a stock Investor
Himanshu Sachan 4 Nov 2020 . 3 min read
As a stock market investor you need to be very active and focused because your one mistake can cost you huge loss. I did multiple mistake as a stock market beginner which cost me too lose around 60k which is a big amount for a person earning 10k/Month. Here I am going to mention few mistakes of my life which can be a great learning for you all.
Note: Considering stock market as a Gamble is a big mistake because stock market works on sentiments and data.
Mistake 1: — Buying stocks on tips
As a beginner you don’t have much idea of stock selection. So, as a beginner what you will do. You will definitely go for asking the tips regarding stock from someone to ease your burden of stock selection. I did the same mistake, back in Nov 2019 I got tips regarding few stocks (Agrophos, 7NR) by a company named MidCapGains.com. So, after getting tips regarding these stocks I bought these stock without doing any analysis from my end. After 1 month I got to know that this company did a fraud of millions due to which both the stocks hits the Lower circuits and I loss 10k in one go.
Learning 1: Do not Buys on tips only. Do your own analysis.
Mistake 2: — Trusting someone in stock market
This is my second mistake what I did in stock market. This incident took place on the month of June 2019. So one day I got a ping from a person named Harrison on my Instagram. He told me that he is a Crypto market trader and he can make me earn 400–500$ per month. For me earning 400–500$ is a great deal so I agreed without inquiring about him and his company. He asked me to pay 10k on his company’s website where they do Crypto trading and after that when I make profit I can withdraw money back. So, I did the same thing. Within 1 week my 10k turns into 50k which is virtually visible on his company’s website. I thought of withdrawing money from that website but before I could withdraw the money that company/person/website all of them went invisible means the domain of the website got expired that person Instagram ID not visible.
Learning 2: Do not trust on someone without inquiring about him. Go and search for legit ones.
Mistake 3: — Entering in FNO trade with savings & DEBT”
FNO trades are the one which can give you unlimited profit or unlimited loss. Most of the time beginners lose their money while playing in FNO trades. As a beginner I also started doing FNO trades. Back in DEC 2019 I entered in FNO trade. Within one week, after entering in this field of FNO trading I earned around 10k profit which is very motivating for me. After earning profits, I started playing more and asked my friends to give their money at 30% return on it. I traded on FNO for next 2 weeks with my total savings and taking debt from my friends in return of it I lost total 30k.
Learning 3: Do not trade your savings in FNO or Intraday. Do not start your stock market career after taking debt from someone.
Keep these learning in your mind and play safe in the stock market. After learning from my mistake I recovered around 45k of my loss in last 6 months. I will recover rest of my loss in coming months. Always learn from your mistakes, and do not attempt them again. If you have also done some mistake, learn from them and do not attempt them again.
Mistakes have the power to turn you into something better than you were before.