People believe in long term investment and long term investor use to buy a particular stock and hold onto that stock for a long term which will serve as a way to earn a passive income and also create wealth from it.

Using value investing principle, they always analyse the business value without tracking the price of that particular stock. They analyse the value by comparing the profitability, the growth and also the quality and sustainability of the company because of their believe in the company's fundamental. But there are some greatly expensive mistake many new investors made while investing which should be avoided and with that, there are some things a new investors should keep in mind while planning to start their career.

IMPATIENT

Investing in the stock market is the most efficient way to build up wealth and patient is the key to investing in the stock market. What people fail to understand is that investing can get you rich but don't expect it to happen overnight you have to be patient with the whole process. But unfortunately, most people get disappointed because they have high expectations of the market which makes them to quit investing. Any investor need to know that the investing process is slow and consistent which will help the investor to create a wealth that is sustainable.

MARKET TIMING

One of the common and dangerous mistake made by an investor is timing the market. It is important to enter the market at the right time but timing the market is dangerous because the move of the market is unpredictable. The investment decision should be made by you and don't invest in stocks just because people are investing in it. Be consistent and regular instead of timing the market which will help to monitor the investment growth.

OVER DIVERSIFYING

It is really important to diversify our investment and not focused all our investment in one place because it always helps to protect the investors from ignorance. Diversification is one of the risk management strategy that has been proven to be effective but then, over diversification can cause an investor to lose his funds and it can also resulting to having a low returns in the portfolio.

Making an investment can be tricky and it is not easy, but it is better to stay in the lane you Know much about and stay away from any pitfall that can lead to investment downfall.

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