Do you know the reason why a lot of people lose money in the stock market? Stock market is not a gamble as some people might refer to it.
You see you can make a lot of money investing in stocks if you know the right thing to do and you have the right type of knowledge.
But there are some deadly mistakes people make which lead to eventual devastation and tones of losses.
Read on to discover what these mistakes are and save yourself before it's too late..
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Not having a plan or a strategy- Getting in the stock market is all about planning where you want to invest your money and how much return you expect from your investment.
A lot of people try to invest without any action plan in mind due to which they try the old hit and trial method where if it hits it hits and if it doesn't they lose a lot of money.
You must always have an action plan before you start anything.
Investing more than you can afford to lose- You should never invest money unless you can afford to lose it.
You see investing in stocks is a high risk trade and you will never make any profit unless you are willing to risk it all.
Therefore make sure you start by investing the amount you can afford to lose.
You should know when to let go off a losing stock- A lot of people hold onto the stock which is falling expecting that it might rise again.
You must have a plan before hand where you should decide in advance that you will only keep a stock till it goes down to a certain extent.
Never hold onto a stock for too long unless it's going up.