5 Common Mistakes of Investors

1. Confusion: Many times an investor has information/tips/advice about few good stocks for buy. He gets confused which one to buy. Somehow he decides and buys one of them but in a day or two the stock price comes down 2-3% without any reason. Here the investor gets confused about fall. He sells it and buys another one from his list. Now the price of first stock starts rising and the second one he bought starts falling down. He again gets confused.
2. Eagerness: It is seen that as soon as an investor comes to know about a good stock, he becomes impatient to buy it without checking its facts and figures properly. When the price of stock moves in opposite direction of his desire, he surprises and checks the facts and comes to know that information he had about the stock was not up-to date.
3. Overconfidence: The day an investor comes to know about good financial result of a stock, the same day of next day he buys it on margin money for more than the cash he had. The price of stock either does not show growth or falls down 1-2% and the investor makes loss on the day. Later he finds out that the financial results are good but the stock was already trading at a high price therefore even the good financial results are not enough to boost the price of stock in the market.
4. Impatience: An investor buys a good stock and even the stock price achieves a reasonable gain in short time but for few days the stock moves in a price range and he sells it. Later he finds that the price of stock again rose up in the market and reached at a very high price in few weeks. He finds himself unlucky.
5. Over Watch: An investor buys a good stock and keeps watch on the stock price on hourly basis. He is confident that the stock is very good and will definitely rise in the market very soon. This hourly watch makes him tired in few days because the whole market also has a trend, one day bullish and another day bearish that affects even good stocks. In this condition he sells the stock at a low profit, without making any profit or even with little loss.

Unless an investor improves his knowledge and habits, it is always going to be difficult to make profit from stock market. So work on above points and improve your profitability in stock market.