Not Having a Regular Investing Plan
it is better to have a plan and follow it regularly even though you started with small amount make sure invest regularly without missing. Even if you are only
buying one share a month right now, that is a start, you can increase the
amount later as your ability to contribute grows.
Not Doing Analysis
Many new investors just buy whatever stock appeals to them at the moment.
At the start of your investment plan and then once a year thereafter, you
should set up specific stocks that you are going to buy, and then stick to
purchasing them at least once a month in quantities that you have decided on
beforehand.
Not Diversifying enough
Many investors buy stock in a few companies and think they have a diversified portfolio. If you have fewer than 15 companies that you are investing in, then you are not really maintaining a diversified portfolio. Once you got the enough knowledge you can concentrate your portfolio but as new investor it is better to start with diversified portfolio.
Not Diversifying by Sector
Remember that you should not put all of your money into a single sector or
industry. Take some time to find companies in different sectors besides the
one you are interested in.
Panic During Downturns
Never exit the market during downturns. This is a huge mistake that millions
of people make – and they do it over and over. As a long-term investor, you
are not worried about downturns, which are going to be short events when
compared to your entire investment history. In fact, you should invest in
more stock, not less when there is a downturn, so that you can get discount
prices.
Changing stocks too much
If you have found good companies to invest in, stick with them. You don’t
need to be continually switching around your investments and doing so will
actually cost you in the long run.
Not Re-balancing
Make sure you re-balance your portfolio at the end of the year, so it continues
to help you achieve your long-term goals.
Avoiding ETFs
Many ETFs have growth rates that outpace the market and you also get the
benefit of massive diversification. You should include at least a few ETFs in
your investment plans.
Sticking by a Company Too Long
While you can get out of stocks too early, you can stick by them too long as
well. If it’s clear that a stock isn’t growing to help you achieve your wealth
and income goals, don’t be afraid to back out of it.
Using Money You Can’t Afford
You may not want to face it but paying off debt first is more important than
investing. Many people tend to take loans and invest in market, they will panic more when market condition not favors, so try to invest the money you can afford
Source: Stock Market for Beginners Book
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