Don't do in stock investments

1.

First and foremost thing is not to be in a mode/feeling that stock investments give you unbelievable returns and can make your money double or triple in no time.

May be some stocks can be grow 80-100% within a month or so and mostly they are penny stocks which are controlled by operators or middle men. So it’s really dangerous to fell into this trap thinking you can also replicate the same. You can very well become bankrupt.

2.

Don’t ever put huge sum into one single stock at one go.

Never do this as it sometimes can cause losing your most of the invested amount.

3.

Don’t blindly follow suggestions given on TV or news paper or in some sites.

Most of the TV analysts say so confidently that some particular stock will definitely grow. If you observe  ,one guy on one channel says it can grow like anything and at the same time other analyst in some other channel will say that it can come down and the stock is not recommended for investment. So here suggession is free and the person who follow that have the bear the brunt of it. Be cautious.

4.

Don’t go for stock investment if you need the invested money back in short term(6 months or 1 year)

This definitely has an impact if your stock doesn't do well and to your bad luck if it is beaten to death.Then you will either have to leave that investment for long term or have to sell by booking huge loss.So it can change all your financial plans.

5.

Don’t ever borrow money and invest into stocks even if you are 200% sure that the stock will grow.

This will have huge impact on your financial life and sometimes it can cost your life. You might have read in news papers about death of stock investors and most of them die due to huge amounts that they need to pay back.

6.

Don’t be emotionally attached to any share.

Some people are so confident on few stocks that even if that loses most of it’s value ,they keep investing into the same stock. Sometimes it can work if the company has good fundamentals, but you are bound to lose most of your money most of the times. So be sure before putting most of your money into one stock or few stocks.

7.

Don’t think that Stock investing is like a gambling game, where you can make most of it if you are lucky!

Sometimes whatever you invested into some stock may give you better returns in short term, but that is not the case most of the times. Try to understand why the price is going up and be cautious with your investment.

Just be aware that

NOT LOSING MONEY IS AS GOOD AS MAKING MONEY

Happy investing!!!!!!!