10 Basic Rules To Follow If You Have Lost Money In The Stock Market

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Many individuals stay away from stock markets after losing money.  Many fail to realize the mistake for making losses.

Investing in stock market is not an easy task but not that difficult as well.  Here are 10 rules to follow:

Study the market you are investing

Many investors fail to study and have knowledge of what they are in investing in and blindly follow what others are doing. If you want to be a pro in stock investing, do not follow others blindly.

Invest for long duration

There is a misconception, that investing in stocks can give you higher returns instantly which is not true in most of the cases. Invest your money for tenure which can give higher returns.

Timing the market

If you are new to investing, better to avoid timing the market. This is because the stock you want to buy can never see a down phase as you are expecting.

Diversify

Diversification of stocks is the main key holder to reduce your risk in stock market investing. Have a healthy portfolio so that in the case of any bear market it should have less impact on your investments.

Not all at once

If you have some savings and planning to invest in the stock market, like diversifying, do not put all the money in one go. Spread your investments over time across markets.

Hounding your investments

Many investors, keep chasing the stock and their returns. Stop doing that and leave your investments alone.

Ignore the suggestion

When you own any stocks, many others provide you with their suggestions and tips. Avoid listening to any noise or suggestions on this. If you have any doubt go check the fundamentals of the company.

Keep your emotions aside

Due to emotions such as fear, greed, and nervousness you may often end up taking wrong decisions.

Bluechip Stocks

Don't go for stocks which everyone is buying. Do your homework and see if the stock is really worth your money.

Invest, not speculate

Buy the stock to hold as an investor if you speculate there are high chances of you losing the money in it.

Read more about: stocks, stock market
Story first published: Friday, July 1, 2016, 10:44 [IST]
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