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Do’s and Don’ts while investing in Share Market

Are you one of those investors and traders, who always tries to remain fascinated with the Indian Share Market? Well, it is good to be attentive and knowing about latest happenings surrounding stocks and share market. One who is knowledgeable could make money in a short period. However, it does not signify that every investor can attain high returns on investment made in the share market. Several factors work together into gaining good profits. The good and knowledgeable investors or traders plan and expand their investment portfolios by investing in commodities, derivatives, in addition to equity stocks.

Safe Investing with Great Returns Matters a lot

Investing in a share market is always a topic of getting scared for the novice investors because the price is volatile. Most of the people have their perception for investing in a share market based on their experience. Watching fluctuation in the price of the share market; it is undeniable to get over-excited or nervous while investing in a share market. The concept of investment is elementary, but it needs lots of precaution and a determined goal to take the decisions wisely.

Investing with the right strategy is always a correct path for reaching your goal. Thus, it is essential to make it accomplish without any stress and arduous process. It is even a problem that some of the investors take the wrong decision so frequently that they have to face a massive loss from it. The fundamental reality of the stock market is that it carries lots of risks but one can easily overcome by it if taken the decisions from the brain, not by heart. Thus let us look around some of my personal learning, which could be followed by investors while investing in the share market.

What must do factors while investing in share market

  • Do lots of research before investment

Investment results in good ROI when done with proper research. Before investing in a particular share, you must check whether it is worthy of your investment or not. As you are going to invest in a company, then it is very much essential that you understand it from its depth not only this, you should also know its products and services, then only you can determine the future growth of it. Hence, you will be getting profit from your investment. I personally prefer reading 5 year annual reports, presentations and con-calls. It gives me a great length of knowledge about the company and its management. Before going to such depth of reading i do initial fundamental study of number with the help of website:

  • Have patience

Patience is one of the greatest weapons an investor could have while investing in a share market. Keeping it, will not only keep you tension free but also ensure about getting a high profit from the investment. Share’s price keep fluctuating, which can scare investors at every moment but having patience will help in this regard.

  • Use stop loss orders

To reduce the risk of facing loss, a stop-loss order is a great weapon. It is an electronic trading order in which the stock is automatically get kicked while reaching a certain limit of price. While using this method you do not need to think about loss, it will itself decide what to do. Just the thing you need to do is set the parameter according to which it will take decisions and further reduce your risk of investing in the share market.

  • Diversify your investment

Bringing diversification in your investment is always helpful. Sticking around a particular type of share is always riskier than investing in many shares. For maintaining a healthy balanced portfolio, it is very important to keep investment diversified. Just the thing you need to make very sure of is investing in stocks of the different sector because if one sector is facing loss, it might happen another sector is gaining profit, which will bring gain. Usually, Ikeep around 10 shares in my portfolio from different sectors to minimize the risk.

  • Waiting for long is tiring, but really pays well at the end

Maintain a certain record, keep watch over the value of stock prices and make it your habit. Though, at times all these things boredom might hit you, so keep in mind a little hard effort from your side is always fruitful. At first attempt, you might need to face dissatisfaction, but in the end, you will earn a considerable profit from it.

What must not do while investing in share market


  • Don’t monitor share price daily

Every day there is considerable fluctuation in the price of the share market. Now you will see a rise in the price and another day you will see fall in it. Monitoring the share market price every day, will not bring stress to you but also make impatience because of which you could take decisions without thinking. As a result, there is always a possibility to come across a situation when you will face loss from it. It is essential to keep track of share price if you are investing in it, but it is not essential to track every day.

  • Never get emotionally involved in your investment

Emotions are always the most prominent enemy while dealing in the stock market. Sometimes the price of the share in which you have invested rise, and sometimes it falls, it is not the time to panic, it is the time to think and make decisions wisely. The emotions of investors like greed and fear could easily ruin the whole game of the stock market, and investors should keep themselves away from it.

  • Never invest in the share market by going against the trend

Over a certain period, a particular trend of investment hit the market. The investors always search for the best option to make their investment in the share market. Thus going with the flow will always provide the best option for investing. Investors even go through a huge loss in order to go against the trend of the market. So, it is advised to follow the trend of the financial market while dealing with the share market till the time you build your own expertise in the share market. As many people build their wealth by going against the trends but for the starters it is not advisable.

  • Never expect more

The expectation in the share market is also one of the enemies of the investors. You can never predict what will happen next in such a volatile market and making expectation out of it would be one of the biggest wrong decision. More specifically, the price of the share market reflects the expectation of investors, so having an irrational expectation will also result in an irrational value of the share.

  • Don’t get involved in over-trading

It is always recommended to take a break from the share market if you are a regular investor. This will not only freshen up the mindset but also bring new strategies in mind which will help you in bringing more profit in the future investments made in the share market. Trading is a journey full of stones which need proper rest while going through it. Usually, to get out from desire of trading daily you can opt for other options like reading book. I personally felt that it develops you as a person with various skills sets.


Depending upon your level of experience, it is always good to keep learning and build your own philosophy . Thus following the list of do’s and don’ts could help you make investment more fruitful and prosperous in the coming future.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.


  • Nice article .
    Investing in Indian Stock Market can be very tricky.
    Hence it is advisable to trade through a financial intermediary who is experienced, knowledgeable and understands the pulse of the market.

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