I started my Investing journey with LargeCap stocks but eventually went down to Mid & than SmallCap
I was introduced to the stock market '7️⃣ years' ago,
I have made many mistakes throughout the journey but I learned alot 💯
Here are my Top 10 Investing Mistakes -
Thread🧵⬇️
I was introduced to the stock market '7️⃣ years' ago,
I have made many mistakes throughout the journey but I learned alot 💯
Here are my Top 10 Investing Mistakes -
Thread🧵⬇️
1) Not understanding the investment properly -
When you buy stock of a particular company, you own small portion of that business.
Investing in stock is more than just owning a financial instrument. Once, you understand this, you'll be careful in owning a particular business.
When you buy stock of a particular company, you own small portion of that business.
Investing in stock is more than just owning a financial instrument. Once, you understand this, you'll be careful in owning a particular business.
2) Marrying a stock -
Sometimes we get too attached to a particular company for different reasons. You constantly hope that the business will perform well just because you like that company.
Don't put your emotions in a stock, accept your mistake & move on.
Sometimes we get too attached to a particular company for different reasons. You constantly hope that the business will perform well just because you like that company.
Don't put your emotions in a stock, accept your mistake & move on.
3) Over diversification -
Over Diversification is for those who doesn't have conviction on their stock picks.
People over diversify their portfolio because of fear of losing all.
It is important that,
You don't let fear of losing be greater than the excitement of winning 😉
Over Diversification is for those who doesn't have conviction on their stock picks.
People over diversify their portfolio because of fear of losing all.
It is important that,
You don't let fear of losing be greater than the excitement of winning 😉
4) Timing the market -
Far more money💰 has been lost by Investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves.
- Peter Lynch
Well, even I made this mistake.
I have never met anyone who could time the market.
Far more money💰 has been lost by Investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves.
- Peter Lynch
Well, even I made this mistake.
I have never met anyone who could time the market.
5) Lack of patience -
If Compound Interest is 8th Wonder Of The World than I say, Patience Is 9th Wonder Of The World.
If Compound Interest is 8th Wonder Of The World than I say, Patience Is 9th Wonder Of The World.
6) Holding on to the losers for too Long -
The sensitivity towards losses is more than twice as compared to gains. The purchase price is a natural reference point against which an investor evaluates gains and losses.
That's why many Investors like me have made this mistake.
The sensitivity towards losses is more than twice as compared to gains. The purchase price is a natural reference point against which an investor evaluates gains and losses.
That's why many Investors like me have made this mistake.
7) Selling Winners Too Early -
Maybe My Biggest Mistake,
We sell our winners thinking they had a long run & have no potential upside left now.
“Selling your winners and holding onto losers is like cutting the flowers and watering the weeds.”
- Peter Lynch
Maybe My Biggest Mistake,
We sell our winners thinking they had a long run & have no potential upside left now.
“Selling your winners and holding onto losers is like cutting the flowers and watering the weeds.”
- Peter Lynch
8) Emotion driven over rationale driven -
Hoping that a company will make profits just bcoz you like them or they're solving a problem you wanted to solve or whatever.
Keep ur emotions aside while making investment decisions, otherwise you're doomed to lose ur hard earned money.
Hoping that a company will make profits just bcoz you like them or they're solving a problem you wanted to solve or whatever.
Keep ur emotions aside while making investment decisions, otherwise you're doomed to lose ur hard earned money.
9) Not Investing In Financial Education Before Actual Investing In Stocks -
▪︎3 years to become a Graduate
▪︎5 years to become a CA
▪︎5 years to become a Doctor
Stock Market is not easy.
To Understand Cash Flow Statements & Accounting Principles you'll need Education.
▪︎3 years to become a Graduate
▪︎5 years to become a CA
▪︎5 years to become a Doctor
Stock Market is not easy.
To Understand Cash Flow Statements & Accounting Principles you'll need Education.
10) Invest based on borrowed conviction -
▪︎Borrowed conviction is much more dangerous than borrowed money.
As I said,
Patience Is 9th Wonder Of The World.
To Execute that Wonder you need conviction on to your ideas or stocks.
It's just not possible with borrowed conviction.
▪︎Borrowed conviction is much more dangerous than borrowed money.
As I said,
Patience Is 9th Wonder Of The World.
To Execute that Wonder you need conviction on to your ideas or stocks.
It's just not possible with borrowed conviction.
Thanks for getting this far!
If you enjoyed this thread please;
- Retweet the first tweet
Also, For those who just started following me,
Here is my Portfolio -
- Infobean Tech
- Adf Foods
- Angel Broking
- Arihant Capital
- Sika Interplant
- Apollo Finvest
- Lancer Container
If you enjoyed this thread please;
- Retweet the first tweet
Also, For those who just started following me,
Here is my Portfolio -
- Infobean Tech
- Adf Foods
- Angel Broking
- Arihant Capital
- Sika Interplant
- Apollo Finvest
- Lancer Container
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