ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Avoid These Common Mistakes In Stock Investments And Earn Good Returns

Updated on August 21, 2011

Before you start investing in stock market, remember that you can not become rich overnight. At the same time, if you do your research properly and plan your investments, you can definitely make some good money. But, there are some common mistakes committed by investors like you and these mistakes may land you in deep trouble. Try to avoid them and safeguard yourself from such troubles. Let us have a look at the common mistakes committed by investors.

- Avoid investing based on stories heard from others. This includes what you hear on the media also. Instead of succumbing to temptations when you hear such stories, spend some time and do your research. Temptations may force you to over-invest in such stocks and when things go wrong, you may face a huge blow. If you decide to invest without researching, you should at least limit your investment. This will help you to limit your losses also if something goes awry. Nowadays, doing research about stocks is very easy because through the Internet, you get all the details about companies. You can easily know the strength of any company and also know the returns that can reasonably be expected by investing in those stocks.

- Likewise, believing in rumors is also dangerous. Many a time, they will just remain rumors only and will never become true. If you come to know of such rumors, you must adopt a wait-and-watch approach. Once again, your investment should be based on your research and not on any rumors.

- Never sell your stocks when there is a panic selling in the stock market. Panic selling is mostly triggered by rumors only. It is better to stay invested even when there is a panic selling going on in the market. The market will definitely bounce back after this trend is over. You should wait for it to sell your stocks so that you can have some decent returns.

- Too much spreading of stocks should also be avoided. Diversification is good to a certain extent but it should not be over-done. You may also find it difficult to manage your portfolio if your investment is spread over a number of stocks. Further, if your total investment is small, each of your stock will be too small to fetch you sizable returns.

- Avoid being excessively confident about your own analysis. Overconfidence may lead to excessive investment and this may prove to be dangerous. Put a stop-loss order on every "buy". This will limit your losses if something goes wrong and the stock-value declines instead of appreciating. Likewise, refrain from being excessively dependent upon the findings of analysts. Even analysts can not make accurate predictions of stock movements. Of course, it is good to do your research and also listen to the opinions of analysts. But, depending excessively on them is also wrong.

Refrain from committing the above mistakes if you want to prevent losses and earn good returns from stock market. The best advice is to limit your losses by putting a stop-loss order. By doing so, even if you are wrong more than half of the time, you can definitely earn good returns in this volatile market.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)