S2 E9 : RISKS IN STOCK MARKET. HOW TO AVOID BLUNDERS.
Don’t Burn Your Fingers. Learn the Safety First.
🧯 Stock Market is Not a Casino
Some people think:
"Buy now, sell tomorrow, make ₹₹₹!"
But truth is:
The stock market rewards the wise… and punishes the greedy.
Let’s understand the risks — and how to avoid mistakes that most beginners make.
⚡ 1. Price Fluctuations (Ups & Downs)
Stocks go up and down — sometimes daily.
- Reliance can be ₹2,400 today, ₹2,300 tomorrow
- News, global markets, politics, even tweets affect prices
📌 Risk: If you panic during a fall and sell, you may lose money
✅ Avoid: Don’t invest based on emotions. Stay calm. Think long-term.
🐑 2. Herd Mentality
You hear:
“Everyone is buying Zomato! Quick, buy it!”
You jump in… and boom 💥 the price crashes the next day.
📌 Risk: Following the crowd without research = disaster
✅ Avoid: Understand the company first. Don’t copy others blindly.
🎲 3. Penny Stocks Temptation
Someone says:
“This ₹10 stock will become ₹500! Trust me!”
It sounds magical — but most of these are low-quality companies.
📌 Risk: High chances of fraud, price manipulation
✅ Avoid: Stick to known companies (like Tata, Infosys, HDFC) in the beginning
🕐 4. Short-Term Thinking
New investors expect:
“I’ll double my money in 1 month!”
That’s gambling, not investing.
📌 Risk: You’ll end up chasing quick returns and losing money
✅ Avoid: Think in years, not days. Stock market is for long-term growth.
🧠 5. No Research = No Control
People buy just because someone said:
“This stock is good, trust me bro.”
📌 Risk: You’re driving blind
✅ Avoid: Learn basic info — What the company does, profits, debts, etc.
📊 6. Not Diversifying
You invest all ₹10,000 in one stock.
If it falls, your whole capital falls.
📌 Risk: All eggs in one basket = disaster
✅ Avoid: Spread your money in different stocks or use Mutual Funds
🔄 7. Panic Selling
Markets fall. You sell everything in fear.
2 months later, market recovers — and you're left with regret.
📌 Risk: You miss the bounce-back
✅ Avoid: If the company is strong, stay invested. Market always recovers.
🚫 BONUS: What NOT to Do
❌ Don’t borrow money to invest
❌ Don’t invest your emergency funds
❌ Don’t trade just for thrill
❌ Don’t keep checking prices every 5 minutes
✅ Recap: How to Avoid Blunders
Panic Selling → Stay calm, stay long
Following the Crowd → Do your own research
Penny Stocks → Stick to trusted companies
All in One Stock → Diversify your portfolio
Wanting Fast Money → Be patient
🧘 Stock Market is a Mind Game
You don’t need to be a genius.
You just need to be:
- Consistent
- Calm
- Curious
- Committed