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Common mistakes done by new investors February 08 2021Share market investment, Stocks, Share market news

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5 Common Mistakes Made by Stock Market Beginners

Investing in any form comes with a bit of risk, especially when you are investing in shares, as shares are subject to volatility in the market.

Although it’s a human tendency to make mistakes, they always teach you lessons. Investors who are beginners in the market often make mistakes while trading due to lack of knowledge and experience.

Below are some most common mistakes done by new investors while trading.

Mistake 1-Being greedy

Stock Market Beginners look up to the market as a profit generation hub, but to generate profit one needs sheer knowledge, patience, courage to take risk and keep a track of the investments. New investors show greediness as soon as they start investing in the market. Being greedy can turn your hard earned money into a mere loss. If you want to exist in the market for long term then you have to leave the greed behind. 

Mistake 2- Bearing too much risk.

New investors go for highly risky investments that offers huge amount of profits which in turn makes the investment risky and there are chances of losing money. You should always pick shares with moderate or less risk to stay away from huge losses. There are shares with moderate and low risk factor which offer good returns. So never go for highly risky investments if you aren’t sure about the outcomes.

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Mistake 3-Over Trading.

Trading is a complex act and it needs conscious efforts in front of the screen throughout the day. Over trading can lead to physical and mental stress. Apart from that it can cause anxiety and lead to a stressful lifestyle. To avoid such situation one should avoid overtrading at the early stage.

Mistake 4-Trade without a plan.

Share market faces unexpected fluctuations and if you don’t have a plan in your head before starting to invest, the market can be a messy place for you. New investors often start off without planning their investment, deploying strategies in their investment plans which can lead to confusion. One should always plan before starting to trade.

Mistake 5-Having no patience

Patience is very essential for a successful trading journey. Being patient while investing and trading is the key to a better trading journey and experience. New investors often lose patience at the early stage. Lack of patience can turn a high profit making share into a moderate or low return giving share if you don’t be patient for the share to grow. 

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1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.


  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

Dear Investor,
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
We believe that an educated investor is a protected investor !!!

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
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