30 investing mistakes by investors
There are some intelligent actions required any investor to lead his investment to a big success. But, majority of investors are losing there entire money through investments. What is the reason behind such huge failure? Below is the list of 30 common mistakes most of the investors make frequently. As an investor, knowing these mistakes will give you more success.
1. Start investing without any goal or plan.
2. Investing without proper research or study
3. Buying stocks at the time of selling and selling at the time of buying.
4. Short term trading by greed instead of long term investing by patience.
5. Following the actions of big famous investors, FII’s (Foreign Institutional Investors) or fund houses
6. Following the public blindly
7. Investing in penny stocks
8. Taking advice from Uncle Sam for investing or taking advises from a wrong, non-qualified adviser.
9. Believing tips, analyst reports blindly
10. Investing on market rumors
11. Greed
12. Not having good understanding on the company, business, before investing in a stock.
13. Ignorance of necessary valuation methods to analyze a stock or analyze performance of a company.
14. Investing without discipline and patience
15. Ignorance of the basics. I.e. meaning of investing, what is a stock, how stock market working etc.
16. Ignorance of factors that capable to lead a market to bear phase or bull phase
17. Buying through IPO’s only
18. Unable to evaluate a stock to identify to buy or sell
19. Investing only on hot sectors or companies from a fast booming sector like internet, real estate etc.
20. Marrying stocks with emotional attachment
21. Borrowing money for investing in stocks
22. Using credit cards for investing
23. Being panic when fluctuations happening
24. Monitoring the portfolio multiple times in a day or week
25. Not knowing portfolio diversification
26. Over diversification by ‘n’ number of stocks
27. Selling good stocks to meet temporary money requirements.
28. Over enthusiasm and expectations
29. Overconfidence
30. Investing only to avoid tax
Hope the above list will help an investor to take a self assessment as well as help to avoid such mistakes in the future. Be an intelligent investor.
Please feel free to inform any points that you feel I had missed in the above list and good to add within.
9 Creative Comments are Rare Specious. Try One::
Great post. Very useful information. I'm curious to know why penny stocks can be a good investment, because I have also heard that they should be avoided.
I hope you have misread the penny stock part. I have informed investors to stay away from penny stocks. That can kill investors.
I will change the penny stock part if that is misleading or not understandable.
Sherin
http://investinternals.blogspot.com
This is a great post. I was going to pick out a point or two to agree with you, but as I read down the list I saw so many of the mistakes I had made in my own investing. Investing on market rumors, checking portfolio multiple times a day, emotional attachment - guilty of all and all should be avoided - unless you would like to quickly lose your investments ;)
Some good general reminders of good practices.
Excellent content - as you always provide and inspires me to come again and again. You are on my RSS reader now so I can read more from you down the road.
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thanks for the above comments. My sincere thanks again to David for the nice and wide comments which he is connecting this article to his investments. You are my precious reader.
Sherin
http://investinternals.blogspot.com
Thx for the info, its really useful, it will helps me a lot if one day i decided to do some investment :)
great to hear the same. Thanks...
Sherin
http://investinternals.blogspot.com
Thanks for sharing this useful post.
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