So, you’ve decided to invest in the stock market. Which means, you’ve probably done your research on what TO DO to make money. Good for you! But, if you ever paid attention to your grandma while you were half awake, you’d know that if there’s one thing more dangerous than ignorance, it’s half-knowledge!
To your benefit, we’ve compiled a list of not-to-dos. Call it a stock market crash…course!
1. Appearances Can Be Deceptive
All that glitters is not gold. Sometimes, it’s a firefly. Don’t fall for a brand’s image. If you don’t understand a company’s business model, don’t invest in it just because it’s popular. Love is blind, but investing shouldn’t be.
2. Social Media = FAKE NEWS!
“This is how this housewife in Bangalore made 1 crore”.
You’ve definitely come across posts like this ^. Too many people follow the first bit of misinformation they find on social media and invest without really doing the groundwork and research themselves. Do yourself a favor and fact-check every ‘financial tip’ you come across on social media.
3. You CAN’T Tell The Future From The Past
Trying to predict the market has its pitfalls (Unless you’re Nostradamus, don’t try). Historical returns don’t always accurately indicate future performance. There are other factors that come into play that aren’t visible to the untrained, rookie investor eye (YOU!). There’s a fine line between calculated risk and miscalculated risk!
4. Here’s Some Advice: Don’t Blindly Trust An Advisor!
Sure, a good financial advisor can guide you and suggest the right investment choices. But, some people put more money in the adviser’s pocket than in the investment. Paying too much in advisory fees is a common mistake you must avoid at all ‘costs’.
5. Kyu Bhaiya Itna Paranoia AKA Don’t Stalk The Stock Market
This might seem a little antithetical to the rest of the tips, but there’s caution and then there’s obsession. Constantly watching the market is a recipe for disaster. It’s best to avoid tracking your performance (both good and bad) too frequently. If you were hitting the gym, you wouldn’t check your progress in the mirror everyday, would you? Life is a game of trial and error – there’s no other place where this is truer than in the stock market.
Okay, you’re now ready to put the FINE in FINANCE. Go to the ‘market’ and make mama proud!
