Indian stock market is a well diversified market. Making a good choice of stocks in which to trade is a complex process and traders must have good knowledge about market for picking up right stocks for themselves. Often traders commit some mistakes while deciding stocks, but yes mistakes are definitely a part of learning process. There are stock market advisory services providers which offers stock tips as depicted by their market analysts. Suggestions of experts are also helpful in making the right choice in the market while trading.

To make a perfect decision is a bit difficult but yes traders and investors can try and avoid committing common buying mistakes to improve their performance in the market. Some of the most frequent buying mistakes which a trader commits are discussed below:

Buying stocks that are cheap

Many traders assume that a fall in share price indicates right time to buy it. Buying shares whose prices are falling is not going to help you earn more. It is advisable to buy stocks when prices are less but only after carefully analyzing the reasons behind the price fall and how it is likely to perform in future. Blindly making an investment in low priced stock is of no benefit.As often there are strong fundamental reasons why it happened and it is traders responsibility to analyze such reasons and then conclude whether to buy it or not.

Relying on usage of margin in excess

Margin is the borrowed money which a trader use to buy securities. It may help you earn more but on the other hand it may earn you loss as everything has its downside as well. If you are using too much of margin money and your investment does not work out the way you wanted it will bring you debt obligation for no reason. Also with this you need to pay extra attention in the market and keep good track record of market updates. With less knowledge , trading experience and time traders should never rely on excessive usage of margin money for buying stocks in the market.New investors should avoid using it. Only if they understand all its consequences then only they should.

Neglecting the significance of qualitative analysis

Traders mostly does not pay importance to qualitative analysis of company. Performing technical and fundamental analysis helps to decide and learn how stock has performed in past and how it may perform in future . Such analysis plays an important role but along with it qualitative analysis is equally important in this changing world.It is most easiest and effective strategy for making wise investment.

Above mentioned are some of the common mistakes which traders must avoid to make a potential investment in the stock market. Service like mcx tips and trading tips related to different market can also be used for earning better returns . Stock market can offer you expected returns, having a good knowledge and using right trading strategy traders can earn profitable returns on their investment.

Author's Bio: 

Epic Research