When there is a boom in the stock market, never do these 5 mistakes

Share Market: The trend of investing in the stock market is increasing day by day. After the corona epidemic, especially people’s interest in investing in the stock market has increased. It has been seen that when the stock market rises, new or small investors make some mistakes in order to earn maximum profits. Today we are telling you about those things that you have to keep in mind during the boom in the stock market:-

1. When the market is bullish, retail investors should keep on withdrawing a small amount of profit and transfer it to a safe investment. The advantage of doing this is that when the market falls, you can re-enter at a lower level.
2. Retail investors should not invest money directly in shares from mutual funds. In fact, experts invest your money in mutual funds. You cannot do this work well by yourself.
3. During the boom, retail investors should avoid investing in sectors that have already achieved great growth. Retail investors should invest in those sectors during the boom in the stock market, whose performance has been weak so far but which are expected to grow further.
4. Invest carefully in IPOs. One should invest only in IPOs with good valuations. There are many instances where retail investors have made losses by investing in IPOs of some companies when the market is at record levels.
5. Retail investors should avoid margin trading. In this the investor invests a small amount and the broker of the brokerage firm allows his client to take 4-5 times the exposure on the investment value. In this, if the price fluctuations are in favor of the trader, then he earns a lot of money. But if the price movement is not as per the expectation of the trader, then he can also suffer huge losses.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Anyone from ABPLive.com Also investing money is never advised here.)

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