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What is the biggest investment mistake you have made ?

Prof. Bajaj (Author Mentor Motivational Speaker Wealth Planner) (7375 Points)

24 February 2012

I am sure all of us have made some mistake (whether big or small) while making investments.

Lets try and share what mistake we have done and why do we think that its a mistake. Also, if you have taken some corrective action to correct that mistake, please share that as well.

This will help others not to make those mistakes and if someone has made the mistake, then he would know, how he can correct the same.

Lets Start !!

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13 Replies

mukesh kumar (Student) (32 Points)
Replied 26 February 2012

Deciding not to invest in the stock market was the biggest mistake i made during the year of 2002.

anky (B.tech) (24 Points)
Replied 01 March 2012

yes you are true we all make mistakes and i have also done a mistake that at the right when its right to sell the shares....i don't because of confusion.

Anshika (-) (178 Points)
Replied 01 March 2012

Sir the biggest mistake was in my 1st equity investment itself,i bought shares when the market crossed 18k mark.
Whereas logically i shuld hav waited for the markets to crumble down n then made investment .
now i have realised my mistake n have to wait till my losses are recovered...

Anshika (-) (178 Points)
Replied 01 March 2012

Bajaj sir please give some tips for first time investor's in stock market...

Prof. Bajaj (Author Mentor Motivational Speaker Wealth Planner) (7375 Points)
Replied 03 March 2012

Dear Mukesh, That is one mistake we all do at all times.

For example, many of us think that 2002 was the right time to invest and now it is not.

However, I believe that in 2022, we will think that 2012 was the right time to invest which we again missed.

Equity is one asset class which pays off well in the long term. Only thing is we need to catch the right instruments.

Prof. Bajaj (Author Mentor Motivational Speaker Wealth Planner) (7375 Points)
Replied 03 March 2012

Dear Anky, totally agree with you.

In fact, this is another mistake we make of not booking profits because of lack of knowledge.

When we invest, we also need to monitor the same, and in case we do not have enough time and resources, we can piggyback on some tools like mutual funds for the same.

Prof. Bajaj (Author Mentor Motivational Speaker Wealth Planner) (7375 Points)
Replied 03 March 2012

Dear Anshikha, in my opinion, we should never try to time the market.

If you are investing in the equity markets, the purpose should not be to make a quick buck. Rather it should be to create wealth in the long term.

When you periodically invest with a long term view, you will create good wealth. For being able to choose the right instruments, one can seek professional guidance.

You may kindly ask more questions as this is a discussion forum and you may have more questions related to my reply.

Anshika (-) (178 Points)
Replied 05 March 2012

Dear Bajaj Sir i totally agree with your point that when investing in equity ,long term investment should be kept in mind. But sir dont you think that for a prudent investor it is advicable to invest when the market is considerably low.So in time of emergency when he wants to withdraw he can even in low market hence no profit/loss. This what i learned from my recent investment. Sir i am a novice in the market and any advice from you on my veiw point will be appreciated.

steve tracks (Student) (21 Points)
Replied 06 March 2012

Thanks all your porblem solving comments Prof. Bajaj.

I am new in stock exchange but my brother made a huge mistake when he just buy some shares without knowing the actual performance of company or without knowing the current financial status of that. The really was a big mistake .He just made decision on friends suggestion.

Prof. Bajaj (Author Mentor Motivational Speaker Wealth Planner) (7375 Points)
Replied 06 March 2012

Dear Anshika,

It is good to note your enthusiasm to learn and gain knowledge. Coming to your query, I do agree that investing when the market is low is of utmost benefit. In fact, everyone would agree to that.

The problem is, how do you decide whether this is the bottom of the market ?? In 2002-03, the Sens*x had hit a bottom of 2900, whereas in 2008-09 when the market was falling people were waiting for the bottom of 4000-5000 and the market reversed from 8000 levels itself.

Over period, you will observe that we are moving towards higher tops and higher bottoms. So its really difficult to catch the bottom everytime. Also, its not necessary that you have surplus cash exactly when the market hits a bottom. These are my Personal views. Could be right or wrong.

You can get in touch with me for any advice you need. You can send me a PM or a mail with your query.

1 Like

Prof. Bajaj (Author Mentor Motivational Speaker Wealth Planner) (7375 Points)
Replied 06 March 2012

Dear Steve, this is again one of the most common mistake done by investors:

1. Not doing any research about the company / product before investing.

2. Going by friends / colleagues / relatives advice without knowing the quality of the advice.

1 Like

Anshika (-) (178 Points)
Replied 09 March 2012

Dear Sir,

The point you are putting across are the ground realities an investor has to face when investing & you have truly summed it up in "markets moving towards higher tops & bottom"
.I agree to your point...
Thank you sir for your expert advice on are investment mistakes. This topic has really made us re-think on our investment strategies.

THANK YOU.