Stock Market: These mistakes will prove costly in market downturn, losses will increase

News Topical, Digital Desk : The stock market is currently witnessing a decline and the market has come below important levels. The biggest fear about the market is that there is no possibility of the uncertainty going away soon. Actually, the market is breaking down due to the pressure of Trump's tariffs and results. And it may take some time for the picture to become clear about both of these. However, market veterans are repeatedly saying that India's economy is strong in itself and once the global signals improve, the pace will be seen. In such a situation, amid this pressure, do not make the mistakes that a common investor often makes. If you stay away from these mistakes, you will avoid big losses. Understand what are the mistakes

Selling out of fear

is an advice that is constantly given and a common investor makes this mistake again and again. Keep in mind that when the sentiments in the market deteriorate, even strong stocks may have to bear the loss. At the same time, sometimes this process can go on for a while. In such a situation, the concern about your money can increase. If you have chosen a strong stock and experts are also expressing confidence in it, then you should not worry too much about the fall in the stock amid external signals. Yes, you can get the investment reviewed by an expert. But do not take a decision out of fear. Keeping an aggressive strategy in a falling market If someone withdraws money at a loss in the market fall, then the biggest mistake is that he adopts an aggressive strategy to compensate for the loss. Not only this, many times people make big investments in a stock after a sharp fall, considering it to be cheap. With the hope that the stock will come back as fast as it has fallen. That is, the fall in the market can prove to be a trap for many people. Where there is a full possibility of losing money. Keep in mind that the fall in the price does not mean that the stock has become cheap. In such a situation, do not make a strategy by looking at the price and do not take big risks for profit. Stopping SIP When there is a sharp fall in the stock market, panic spreads among investors and many investors panic and stop the Systematic Investment Plan i.e. SIP or redeem their investment before the target year. At this time it may seem like a safe move to the investors. But in reality it is harmful for your financial health. The basic principle behind SIP is cost averaging i.e. averaging the cost and it is designed to work in the interest of investors during market volatility. In fact, when you continue SIP during a market fall, you are getting more units for the same amount paid every month. Because the net asset value (NAV) is low. This strategy ensures that when the market recovers, you get more profit on these additional units. And your loss is covered quickly. 

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