Shares/Stock Mistakes People Do While Investing in Stocks

[Mika]

Do you know what is the biggest mistake 90 percent of people investing in the stock market make? Well, they buy stocks and expect the stocks to go high in the next week, and if that does not happen, they feel sad.

Warren Buffet is the most successful investor. Do you know what Warren Buffet does while investing in the stock market? Well, he invests in the stock market and hopes to make profits in 10-15 years. He does not look for immediate profits.

Another common mistake people do in the stock market is they choose stocks. Choosing stocks means people invest in stocks that are gaining a lot in price.

What does Warren Buffet do? Well, he chooses businesses. He invests in the businesses and not in the stocks available for publicly trading. When you choose a business to invest in through the stock market, you become an owner of the business, and you no longer care about immediate profits.

 

[Jasmine]

One of the common mistakes is related to choosing the stocks for investment. A lot of people follow the price history when making an investment. When you only see he price history, you are likely to get into the trap created by the whales. Whales are notorious for moving stock price by suddenly buying in huge quantity and then selling all stocks. When they buy, there will be created demand in the market, when there is demand the price moves up. When the whales think the price has gone enough high, they start selling and when they start selling, there will be too much supply and hence the price starts going doing. Instead of seeing the price history only, you need to check the company’s real performance in the market. Check the balance sheet and how much profits the company is actually pulling. Don’t choose stocks, choose the company. This is a great advice from Mr. Buffet.