5 Mistakes Everyone Do While Investing in Share Market

Investing in the stock market remains attractive for anyone trying to increase their wealth and ensure their financial future. The appeal of participation in the dynamic world of stocks and equities has attracted the interest of both seasoned investors and newbies. Despite its potential advantages, the stock market can be difficult and harsh, causing investors to make fatal errors. This explains why people take positional stock trading advice in India.

In this article, we’ll look at five common errors that practically everyone makes when investing in the stock market. Understanding these hazards is critical for all levels of investors since it can help people navigate the market’s intricacies and avoid avoidable losses. Individuals can improve their investment methods, reduce risks, and boost their prospects of long-term success by learning from the successes and failures of others.

Top 5 Investing Mistakes

These are the top five common mistakes people make when investing in the share market:

Inadequate Research

To pick your stock to invest in, you must first complete your research. It’s essential to understand the company’s history, how they’ve done in the past, how they’re likely to perform, and how they compare to their competitors.

  • The initial step is to determine their ticker symbol, which will be used to list them on a stock exchange. A quick search online will give you an overview of the company’s stock performance.
  • Examine the company’s present performance. Is the share price rising or decreasing?
  • Examine the company’s Investor Relations page. This has a plethora of information on everything you must know before putting money behind that company, such as financial performance, press releases, and dividend payment history.
  • Read the 10-K. It is a thorough report that covers the organization’s history, financial accounts, earnings, executive remuneration, and other pertinent information.

Consider whether the company’s values are compatible with yours. Is it in an industry you want to support, and is it acting responsibly? Check the most current stories about the company to know if there are any serious concerns.


Not Allowing Your Investments to Mature

When it involves investing, timing is essential. It is better to hold shares for a longer time so as to maximize your gains. Investment is what you do expecting a reasonable amount of profit after a while.

One common mistake is when investors bail on investments because the shares did not double in a given amount of time. There’s a common saying that goes thus, if you need your investment to mature quickly, you probably don’t have proper savings.

Excessive Diversification

Diversification is an excellent risk management technique. However, that’s if you use it correctly. Assets provides value when they have different profiles and small correlation. For example, when diversifying a stock portfolio, consider adding other assets such as commodity ETFs, gold stocks, bond funds and equity, among others. On the other hand, over-diversification can be harmful. For instance, joining equities ETFs to a stock portfolio.

Investing All of Your Funds

There’s no way past it: the worth of your investments might go down, and this means there’s always a danger you’ll lose money. With that kind of volatility, it makes no sense to invest all you own.

One of the most important investing rules is to never invest an amount you can’t let forfeit. This includes next month’s rent, a well-saved housing deposit, or the funds required to go on vacation next month. Sit down and create a rough financial schedule for the future, noting major expenditures or purchases such as housing, education (or your children’s education), and, eventually, retirement. This should show you how much and when you’ll need to access your fortune.

Depending on Emotions

When taking investing decisions, there are various factors to consider. Another typical financial mistake is depending on emotions in a turbulent market. Making an emotional decision means when you can’t wait for a while to sell or buy a share. Do not make investment decisions just because you fell like. The less emotions you bring into the market, the better.


When approached with wisdom, discipline, and an eagerness to learn from past mistakes, investing in the stock market can be a successful thrilling experience. Investors can improve their decision-making process and chances of constructing a profitable portfolio by recognizing and avoiding the five frequent mistakes outlined in this article. You can also check for short-term trading recommendations in India. Keep in mind that the stock market is not a quick way to make money. However, it can be a powerful tool for wealth generation and long-term financial security with proper preparation and execution.



1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.


The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).


The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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