My mistakes in stock market

Everybody makes mistakes as you learn. Its important to not to repeat your mistakes and to learn lessons from others mistakes.I made idiotic mistake by being impatient to hold eventhough the story was great.share yours.

 

My biggest mistake is that after entering the market in 2004 I wasted my intitial 7-8 years in trading. I was impatient and did not consider investing as an option. Just used to make a few thousand bucks here and there by trading.

It was around in 2012-2013 that I started realising that I was just wasting my time and then turned into a long term investor. Had I been a investor right from the beginning, I would have been 10 times richer. The stocks in which I used to trade generally and sell them at 4-5% trading gains have multiplied 30-40 times. I had the money to invest for long term, I even had a good knowledge about the stocks but lacked patience.

Now I have completely changed my strategy. I hold a very concentrated portfolio of only 5 stocks and hold them for atleast 4-5 years view. This strategy has been good for me so far.

 

I made mistake in beginning of buying junk stocks in belief that such stock is cheap and quality stocks is expensive. I burned my fingers badly because junk stock goes to zero when there is trouble in markets while quality stocks retain the price even in bad markets.

I now buy only quality stocks but I don't have patience. If stock underperforms, I sell the stock. Then stock zooms and I feel very bad about it. I lost so much money due to this. I have to learn to buy only quality stocks and have patience to hold the stock even if there is underperformance in short term.

 

thankyou buddy for sharing your experience. almost everyone including me look for quick gains from stocks. that is very widespread mistake but it is the biggest enemy of serious wealth creation. i too was impatient and booked trading profits 10-30% on my stocks and missed huge gains like 5-10 times in many stocks.

 

thankyou for sharing your experience with us. Oppurtunity loss in the markets in not investing early and not being patient are huge. it is time to realise our miistakes and accept that we are wrong. we should always have a investment philosophy and we should follow it without compromise on fundamentals of the stocks we invest in.

 

My mistake is mainly not scaling up the winners... I used to sell very good stocks for 20-30% profit and allow the profit to run with the company ... a sort of collecting free shares... This strategy did not allow me to pyramid the winners ...

 

My inputs.
Lessons learnt aka mistakes committed..
- Dont do intraday trading. I have been doing this for long time & my losses were more than profit s.
- Never be impatient..still trying to master it.. due to lack of patience i have missed the big profit margin.
- Dont invest in dabba stocks with bad promoters, hoping it will grow like anything.
- Never buy any script without even knowing the basics. Bought some penny stocks in 2012 which I was not able to liquidate.
-Never keep a portfolio of more than 15 stocks. I had a bigger portfolio of 40 stocks. Very difficult to track all ++ more tension.
- Dont blindly run behind Porinju, dolly & others. Invest only if you understand the business & company profile.
- still learning to master patience..this is the greatest challenge..I am tempted to book profit if get 10 % margin.

 

if there was only one, I'd list it, plenty of em
the biggest one i'm yet to overcome is "emotions" - never think of what if/could/would have been but rather look at the next trade/opportunity than pondering over bygones
also, never marry your stocks (companies)

 

@ Bombay boy, Cochin boy Here. agree with you- "never think of what if.."
I am also having dis thoughts often. Last month I had 50k in cash after some profit booking in a script.I wanted to deploy this money for a quick gain. Figured 2 choices. 1.Welspun India - 675rs.(correction happened) 2. Lincoln pharma - 146rs. After lot of thoughts, finally I bought 75 shares of Welspun..waited like anything for it to move to 820rs. It didn't..by the time Lincoln jumped to 205. Since I wanted to take cash out, I sold Welspun at 740rs.Once I sold Welspun it easily reached 835 levels.. unlucky me... Sorry for long story..just thought of sharing with you guys, since I can't share with my family,friends that I have invested in stocks;They will treat me as a gambler..
Thnx @ w4wealth for starting this thread.
Bottom line- Try to control emotions & master patience..very difficult, is't??

 

A company which is talked about much as a good company is hardly a profitable investment .

 

In your desire of holding multibaggers in your portfolio by being a long term investor, dont ever forget the regular opportunity of blending in some trading gains by churning your portfolio without changing its constituients

 

I Appreciate your open mindedness and humility. thankyu for sharing your experience. looking for quick gains is not good for investing. easy to say but difficult to practice. so all the best for future.