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Marketing

4 Mistakes To Avoid While Investing In Stock Market

4 Mistakes To Avoid While Investing In Stock Market
4 Mistakes To Avoid While Investing In Stock Market

Summary: While investing in stocks it is easy to get carried away by numbers and record highs. Don`t make these mistakes in the stock market especially when it’s too tempting.

Investing in a stock market is a serious affair and a long-term game. Despite this, many investors in India tend to succumb to their emotions every time the market hits a new high. There have been many firsts for the Stock Exchange. When it hit 1,000 for the first time, it was an all-time high! And then it reached 10,000, 20,000, 40,000, or 50,000…and with every new record, the story continued.

There will be a time when the Sensex will cross the 100,000 mark and then 500,000, but we don`t know when that will happen. No matter how many records the market is breaking, the basic rules of investing don`t change. If there is one important thing that you should remember while investing in the market, it is that market high is not a destination; it is a journey towards wealth creation.

To ensure that this journey is smooth and produces desired results, you can listen to a business motivational speaker who has a good experience in financial investment.

Here are some golden tips that you should consider before investing in the stock market while it rides the bull:

1. Avoid Fear Of Missing Out

Many people suffer from FOMO or fear of missing out when they could not participate in the stock market rally. Recently, the same happened in India and now there is a strong urge to invest before they lose more. But fear of missing out on some perceived gains should not be the guiding principle when it comes to investment. It is best to avoid FOMO because it will lead to many irrational money decisions that will result in losses.

2. The Market is Smarter

A market is a forward-looking machine. It means that the market always sees things we cannot. It has discounted the third or even the fourth wave of the pandemic. However, there is a huge difference between the market’s performance and a nation’s economy.

The Sensex has its own rules, which is why the market keeps proving everyone wrong. This is why investors should not overthink. Focus on diversifying your portfolio, asset allocation, and risk profile. Control the controllable before it goes out of control, i.e., your behaviour, your money, and hence your losses. To know everything about Share Market from the scratch, watch here:

3. Don`t Invest in Meme Stocks or Trending Stocks

You must have heard about various stocks and their sky-rocket prices without any strong fundamentals in place. It is a pure play of operators and the community. Similarly, many people invest in penny stocks and meme stocks in India based on the news for a quick gain. However, always know the fact that whenever a stock is trending, it is trending for the wrong reasons.

It is important to remember that you are investing in businesses and not in stocks. Find good businesses, and avoid investing in memes and penny stocks. Understand your risk profile, and financial goals, and do thorough research before you pick any stock, the way you do it before buying a car or a house.

4. Don`t Follow Anyone Blindly

Be it Rakesh Jhunjhunwala or Warren Buffett, never follow anyone blindly. These legendary investors are experts in the stock market and there is nothing wrong with their investing advice, but the issue lies in following any advice blindly. If you follow Warren Buffett, you must be aware of his famous quote on diversification. He says, “Diversification is for the ignorant.” It simply means that those who know how to pick the right stock at the right time should only invest in a few stocks instead of spending on multiple stocks across multiple sectors. But this does not always work for a retail investor.

When you invest only in a few stocks, you put yourself at a huge risk of having a concentrated portfolio. So always have a diversified portfolio, unless you have the money, time, and expertise to select stocks like Warren Buffett.

Never invest in one go, especially when the market is showcasing high fluctuation. So unless there is a good correction, always spread your investments into tranches. For example, if you have Rs. 5 lakh to invest, then divide that into five or six months and invest accordingly.

The idea of managing a business is easier said than done and we completely agree with you. This is why to help you move forward with your business goals, we at Bada Business offer an exclusive Business Coaching Program that comes with Foundation courses, specialized courses, and value-added courses.

To know more about our courses, visit: www.badabusiness.com

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Business motivation

5 Steps You Can Take to Get Your Business Off the Ground

Startup Growth
Startup Growth (Photo Credits: Pixabay)

Mumbai, November 17: Starting a business can be a daunting task and more so amid the coronavirus outbreak. There are several things which one needs to take care of, from the right idea to proper marketing, everything needs to fall in place for a business to take off.

The process of starting a business is always filled with challenges. Therefore, it is very important that you should be prepared before you take the final leap. The success of a business is never guaranteed, but there are few changes which you can do to reduce the risks and improve the chances of your business in being successful.

We have curated a list of 5 steps which you need to take before you get your business off the ground:

1. Think of a unique and a great idea: Think of a unique idea for your business and ask yourself how will my product be different from thousands of products which have already cluttered the market. Try to offer the customers something which they haven’t experienced before. Also, the product should solve the customer’s problem and then only will they be able to relate with your product.

2. Define your business: This is another critical step. Before you start a business, it is very important to understand how much time (and money) you’re willing to devote to your new venture. Also, a few other questions which you need to answer is that will you have a brick and mortar store or only have an online presence.

3. Study the market & competition: Do extensive study before launching a product in the market. Try to understand if there is a demand for your product. Never underestimate your competition. Always learn from their strength and also be aware of their weakness and understand the space where your product will be able to enter.

4. Check your finances: It is very important to track your finances from the get-go. Spend wisely and only on things that are required. Every business takes time to start off. The initial few days to a year might be full of struggles, so save your finances for tough times ahead. Keep an eye on your finances, so that midway, you don’t have to wind up your business and exit the market.

5. Keep Your Plan B Ready: Always keep a plan B ready before you start your business. One can never predict the challenges which can crop up and pose a hurdle in the path of growth. For e.g. no one could predict that coronavirus could get the world to a grinding halt. Several businesses shut due to the lockdown and thousands were left jobless. However, the ones which had a plan B ready could sail through the crisis period.

We hope that these steps will come in handy when you are thinking to get the business off the ground.

Categories
Startup Strategy

Startup Growth Strategy: Follow These 4 Steps to Sustain in the Competitive Market

Startup Growth
Startup Growth (Photo Credits: Pixabay)

Mumbai, October 20: Starting a company is not an easy task and one of the most important things is a strategy. You need to have a robust strategy in place for your startup to grow.

It is a very difficult and competitive space for a new company to establish itself. According to a report on the Entrepreneur, 50 percent of the startups fail every year and only a few manage to survive for more than five years. The ones who succeed for a longer time in the market can do so by creating a startup growth strategy.

Check Startup strategies shared by Dr Vivek Bindra: 

Today, we will talk about 4 steps to develop your startup growth strategy: 

Create your vision statement

When you are starting, create a vision statement where you would like to see your company in the future. Dream big, aim big but is also very important to remember that there are various restrictions in the form of budget and other resources, unlike a big company. But, if the focus is right, you will soon be able to achieve it.

Own your strengths and weaknesses

Identifying your strengths and accepting your weakness will help you to sustain in the market for long.

Determine your positioning in the market:

You must have an understanding of your business. You must know, what sets you apart from your competitors.

Keep a check on your competitors: 

In the age of digital media, a consumer is bombarded with numerous information from various sources. Very few manage to stick on to the mind. Therefore, it is very important to check on your competition and never underestimate them.

These strategies will help you to increase sales of existing products or services on existing markets, and thus will help in increasing your market share. They will also create a strong brand recall.