I started reading and analyzing about market 2 years back and committed many mistakes and learned many lessons from them. In this post, i am going to shares some mistakes out of many. As said “We should learn from our’s as well as from other’s mistakes, so we will take the wise decisions in life and in investing.”
As Sir Isaac Newton said:
“If i have seen further than others, it is by standing upon the shoulders of giants“
The above quote is more meaningful for reading voraciously on different subjects and learn the core ideas from them. But in this post i am using it instead of books, mistakes of others and learn from them.
Charlie Munger said :
“All I want to know is where i am going to die, so i will never go there.“
This beautiful and thoughtful advise can apply in every part of life, business, market, job etc.
The below are some mistakes from my investing journey and may help you for your investing journey:
1: Don’t borrow money from anyone and invest in market, at the end you will in loss only.
2: Don’t invest on anyone else suggestion or tips, you should do your own analysis and get conviction then only invest. If you don’t have knowledge about the market and investing then first educate yourself.
3: Don’t invest in any bad business like lots of debt in the books, very high P/E(Overvalued).
4: Don’t invest on any stock if you don’t understand the underling business of the organization.
5: In stock market, there is nothing certain, so be cautious and don’t be overconfident that you only get profits, you may get loss as well, so prepare yourself emotionally.
6: Don’t make your portfolio so big that you can not properly monitor it.
7: Stay away from IPO’s but if still you want to invest in IPO then first do a thorough analysis of the IPO.
8: Don’t Invest in any stock which is out of your “Circle of Competence“.
9: Invest only that money in the market that you don’t need in near future i.e 5 years and be ready if the investment become zero then also it will not harm you.
10: Don’t Overpay for any business whatever good or attractive the business is.
11: Don’t sell your winners early, let it compound with time.
12: Don’t hold losers and don’t average bad stocks.
13: Don’t just learn from your mistakes, learn from other’s as well.
14: Don’t envy because others are making money in the market.
15: If you are investing in market and want to take wise decisions then don’t waste your time, Read..Read.Read and Read a lot.
You can start your reading journey with the below books, Buy from the below link and start your journey:
The Intelligent Investor
One Up On Wall Street
Poor Charlie’s Almanack
Warrent Buffett letters
At the last, In share market Don’t follow others. You can see below what happen if you follow others.
There are many more mistakes from which i have learned many lessons. I will share some of them in other post.
Take care and keep learning
All the best!