Today, the figure of Demat accounts in India has crossed 10 crores One of which is my account as well. My reasons for investing money in the stock market were the same as all Indians usually have. Earn as much money as possible in the shortest possible time. Until three or four years ago, I knew nothing about the stock market, how it works, what science, math, or gk is behind it, and why it sometimes turns green and sometimes turns red. I only knew that from here you can invest money in big companies by buying their shares sometimes it benefits you when the stock price rises, and sometimes it gets lost when the stock price falls. When I was graduating, some friends around me used to invest in the stock market. Some boys in my village also used to invest in the stock market. They used to talk with each other about it sometimes. Like today the market went up, today the market fell. You take the shares of this company. You should not have invested in that company after listening to all of them, I felt that society has gone far ahead I am not left alone, and when I used to listen to his earnings and watch such videos
which show that the shares of X company gave a return of 80% in two months. So, I thought I should try this too and I withdrew money from my grandfather’s bank account thinking that I will earn at least more returns than the SBI interest rate then I will keep the return with me and I will put back all the money I have withdrawn with interest. After that, I opened my Demat account with the help of friends from the stock market. he also told me how many shares he would take from which company. In those days, I took all my time away from Instagram and Facebook and now spent it on the grow app. I used to see my portfolio during class, on the bus, while playing, and at home. I used to think that it would only increase with my viewing and all the time my focus is on knowing and thinking about the situation of my stock at this time and making arguments about the reasons for its growth. Sometimes when the stock went down to 1%, I would sell that stock, and sometimes even when the stock went down to 10%, I used to stay in that company’s stock.
When a friend of mine told me to withdraw money from this stock, I used to withdraw money from that stock at that time. Due to many such mistakes, I suffered a lot of losses in the stock market and gradually I started realizing my mistakes and I then withdrew all money from the stock market. Although I did not suffer major losses due to low investment, I would still say that the method I adopted or the way I invested money was completely wrong. So whatever I have learned from that experience I want to share with you so that you will never make such silly mistakes as I do.
Precautions you should take before jumping into the stock market
- Never blindly invest in the stock market you should enter the stock market after acquiring the basic knowledge about it by your financial goals.
- Don’t put your all investment in one stock, a well-diversified portfolio is always the best option.
- Ensure that you keep your expectations real based on the market unpredictability, risk factor, inflation, and national and international events
- Do proper analysis before buying penny stocks you might think the risks are low, penny stocks tend to carry a much higher risk than the stocks that trade on major exchanges.
- Instead of lump-sum investments, use systematic investment plans (sips)
- If you don’t know much about the stock market and want to invest in stocks, then you should invest in a mutual fund and index fund that are less risky.