5 common mistakes Investors do in a Share Market

I have done my internship in a company dealing in Financial Securities. There I observed some good investors and some average investors. But some mistakes which were common in all investors are-

1. Blind Trust on Broker- Many investors don’t know on which share they should invest. They never study about the rise and fall of the market. They give complete authority to the Broker to decide a company and number of shares for them. Some Brokers for good commission ditch their clients and compel them to invest on some share which has a high future uncertainty. You buy a share or you sell a share, your broker will get a fixed commission on your every transaction. My Uncle lost a good amount of money because he blindly trusted his broker. After that incident he never ever invested in shares.
   
2. Lack of Knowledge of Financial terms- If you are investing in a share market atleast, know what is the meaning of a share? Beside that you should also know about debenture, dividend, interest, debit, credit, brokerage, liquidity and commodity. I have met people in share market who don’t even know what is a share and then also they invest on it. Without the knowledge of financial terms investing in the share market becomes more complex.
   
3. Share Astrology- Astrology is a good science but very limited people have its accurate knowledge. Astrology can predict whether you have good analytical and speculative skills or not but it can never predict that which share will rise or fall. Many investors get into the trap of Share Astrologers who predict a share for them and they invest on it. In a share market, believe more on your own intelligence than on any kind of occult science.
   
4. Not studying at all- Learning is a continuous process but unfortunately after getting a job people stop it. Share market is a place where you will have to be aware of what is happening around you. New plans of the company, New plans of the competitors of the company, Political changes, Economic stability of the country, Potential of the sector you are investing etc. You should know. Even things like War and disaster can affect the share market. Purchasing a share just because it is rising is a dumb philosophy of buying a share which many investors and brokers both practice.
5. Lack of Patience- Patience is a great personality trait. You can achieve anything if you work and wait. Many investors want to become rich in one night which is next to impossible. There is no shortcut of success. When they lose even a small amount of money either they stop investing or move to some other stock option. If you have analysed about the company you are investing deeply then there are 70% chances that you will not fail. Every plant grows slowly let your investment also grow.