Stock Buying Mistakes Explained

Many new investors rush into the market without proper knowledge. Here are frequent mistakes:

1. Skipping analysis – Buying shares of Apple just because they are popular, without checking fundamentals.
2. Lack of diversification – If that stock falls, the whole portfolio suffers.
3. Forgetting about costs – Brokers may charge trading or withdrawal fees.
4. Chasing quick profits – Short-term news can mislead and cause losses.
5. No investment plan – Without clear strategy, emotions control decisions.
6. Not understanding risk levels – Growth stocks, investing guide for GE Vernova example, can rise fast but also fall sharply.

Avoiding these errors helps investors build a balanced portfolio.