Today we will tell you why people fail in share market. After all, only 10% of the people are able to earn money from the share market, whereas the remaining 90% of the people fail in the share market, but what is the reason behind this?
So today we are going to discuss this topic in detail about ‘Why people fail in share market’. By reading this post, you will come to know that what are the mistakes that a new investor makes in the beginning in the stock market and how you can avoid those mistakes so that you can be among the remaining 10% of the successful stock market people. May it happen
Friends, this is a very important topic, that is why it is very important to talk about it, because nowadays many new people are losing their money day by day in the stock market.
And that’s why it is our responsibility to protect you from the losses in the stock market and to provide you with the right information. So let’s go straight to our topic now.
Why people fail in share market?
All the reasons why people fail in the share market are mentioned below one by one, in which the first reason is –
1.Not understanding the basics of share market
People fail in share market because they do not understand the basic fundamentals of stock market like;
- How does the stock market work,
- how to invest money in stock market,
- how to earn money from stock market,
- When should you buy and sell shares?
- When does money come after selling shares,
- How the share price decreases or increases,
- What should I look for before buying shares?
- In which stock should the money be invested?
While it is very important to be clear of all these basics to be successful in the share market. So if you do not have complete knowledge about the above questions, then once you read and understand all these basic things properly, only then start investing in the share market.
Now let us move on to the second reason which is very similar to the first reason;
2.Investing money without learning share market
The second major reason for failing in the stock market is investing money without learning. Yes, before investing money in the share market, you have to learn a lot of things, otherwise there are high chances of loss.
Most of the newbies fail in the stock market because instead of learning things, they invest money without thinking and become paupers after a while.
3.Not following the rules and regulations of the stock market
All the people who have been successful in the stock market till date, all of them have followed the rules of the stock market. Yes, there are some basic rules of the share market which all big investors like Radhakrishna Damani, Ramdev Agarwal and every successful investor follows.
While those who enter the stock market newly, they do not know anything about these rules and that is why they make mistakes in the beginning and end up losing.
Therefore, it would be better for you to know about these rules first and only then invest your hard-earned money in the stock market.
4.Failure to diversify your portfolio
The next reason for failure in the stock market is that people do not diversify their portfolios. Portfolio means a group of your shares, that is, all the shares in which you invest are called your portfolio.
The better companies you have invested money in, the faster your portfolio will grow in the long-term, meaning the more you will benefit, but beginners make the mistake of investing all their money in a single stock or in different ones. Instead of investing money in companies with different market caps, invest in companies of the same sector.
So if you do not want to fail in the stock market, then try to invest money in different shares instead of a single share so that even if a company sinks, it will not affect your portfolio much.
5.Losing money due to tips and calls from others
Now a days lot of people loose their lot of money in free tips and college affair whereas I advise you to do your own research. Or if in the beginning you want to do it in the share market only on the calls of others, then you can join our free Telegram channel.
Here we tell you about trading in the market on a daily basis, through which you can also learn trading and gradually you can move forward on the journey of becoming a successful investor in the market by doing research on your own.
6.Investing in stock market by taking loan
The biggest reason for the failure of people in the stock market is investing money by taking a loan, yes, most people make this mistake in the beginning that they invest money in the stock market either by borrowing money from a friend or by taking a loan from the bank.
Because they think that their money will increase very quickly in the stock market and they will return the bank or friend’s money very quickly
I hope now you must have understood why people fail in the share market and what are the mistakes that a new investor makes while starting in the share market and how you can avoid these mistakes.
If you are new to the stock market, then this information will definitely be useful for you. If you have any question related to this post, then definitely ask in the comment box below.
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