- Start small
Do not put all your money the market at the beginning. Start small and test what you have learned. You can start even with an amount of Rs 500 or 1000.
- Diversify your portfolio
It’s really important that you diversify your portfolio. Do not invest all in just one stock. Buy stocks from companies in different industries.
- Invest in blue-chip company stocks
Blue chips are the stocks of those reputed companies who are in the market for a very long time, financially strong and have a good track record of consistent growth and returns in the past many years.
- Never invest in “Free” tips/advice
This is the biggest reason why people lose money in the stock market. They do not carry enough research on the stocks and blindly follow their friends/colleague’s tips and advice.
- Avoid blindly following the crowd
A number of people have lost money by following the crowd blindly. So avoid this mistake.
- Invest in what you know and understand
Do not invest in something which you don’t know. Learn and understand before investing.
- Know what to expect from the market
Do not set unrealistic expectations for the stock market. If you want to make your money double in one month, from stock market, then you have set your expectations wrong. Have logical expectation from the market.
- Have discipline and follow your plan/strategy
Do not get distracted if your portfolio starts performing too well or too bad in the first few months of investing. Many people increase their invested amount just in a few weeks if they see their stock doing too well, and end up losing in the long run.
- Invest regularly & continuously
The stock investment gives the best returns when you invest for the long term. Do not invest in a lump sump at just one time and wait for the next 10 years to see how much returns you got. Invest regularly whenever you get a good opportunity.
- Continue your education
Keep learning and keep growing. The stock market is a dynamic place and changes continuously. You can only keep up with the stock market if you also continue your education