Share Markets are whereyou become a millionaire overnight or go down the wire. But investing in them cleverly helps you gain better returns than most other investments such as bank deposits, gold, or even real estate. Making mistakes while investing is common. Therefore, remember a few thingswhile investing that protect your hard-earned funds.
Following are some common mistakes to avoid when investing inICICI share or others too in the Share Market:
1. Investing with a trader mindset
Most traders buy and sell stocks,while individual investors focus on buying and investing. The difference between a trader and investor is that the former looksfrom a short-term perspective. But as an investor, you considera long-term perspective.
Expecting quick and speedy returns might not work for you due to volatility and cyclical movements of the market. As an investor, invest your money for at least seven to 10 years to see significant results.
2. Chasing your returns
Pick a stock but do not chase its returns. It is essential to know that the market movements are volatile and cyclical. Therefore, they follow their path of ups and downs. If you invest in a particular stock because it provides high returns at that given time, it is not certain that it will be the same once you invest in it.
Therefore, before investing, even if it is the ICICI Bank share
, do a detailed study of the company, its business model, growth, etc., to ensure you are investing in the right place.
3. Picking up stocks
Asset allocation is key to successful Share Market
investments. However, most investors focus on picking individual stocks than diversifying their portfolios and focusing on asset allocation. Therefore, if you want to play safely while investing, it is essential to first correct your asset allocation.
Successful investment is all about having patience. However, most investors lack patience and end up messing up their portfolios. If you want to be disciplined in your approach towards investments, look beyond the short-term volatilities and focus on the long-term growth. Remember, market fluctuations happen. But if you have patience and stay invested, it benefits you in the long term.
These are some common factors investors should considerwhile investing in ICICI Bank share and other investments. If you follow the mentioned points and stay patient, your investment journey will be incredible!
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