Some investors seem to know their ways through the share market in Colombo Stock Exchange which has made them to be very successful. On the other hand, other investors are still struggling, making mistakes day in day out to the extent that they incur huge amount of losses in the share market. Contrary to believe of many people, there is nothing like luck in share market. It is a business that every investor must sit down to learn.

The first mistake that people make in share market is that they fail to invest in themselves. Share market investment deals with lots of money and so there is the need to have proper knowledge of how the market works. Investors need to know the available options when it comes to buying and selling of shares in CSE. Many people who are successful in stock market today read wide about the subject before dabbling into it.

Treat share market as a business. Share market investment should not be like a hobby such as riding, racing etc. This is real business where lots of money is invested. Investors need to know how the business works. Those who are looking for ways of make extra income or creating wealth through share market investment need to produce a business and marketing plan and attending stock market seminars and conferences in which more enlightenment will be provided for investors. One common habit with successful investors is that they make friends with other people who have the same passion and love like they do so that they can share their experiences together.

Another great mistake that people make is not making use of stock brokers. Stock brokers should be investor’s greatest friend. This is because they possess the needed knowledge, experience and skill in the business that investors can benefit from. The most important thing is to find a broker who is knowledgeable when it comes to different kinds of share market investment strategies in Colombo Stock Exchange. Brokers have good knowledge about trends of the share market and can rightly educate investors about great potential opportunities in any good stock around. They can also manage investors’ portfolio to a great extent. However as pointed out in a previous article stock brokers are not the masters of the future and it is the investor who should take the final decision.

Investors should not chase yields. This is another great mistake in share market investment. It is not advisable to consider yields before making an investment. Many investors search for investments that have high yield and low risk. This is far from the truth. The higher the risk of an investment, the greater the yield, it is also vice – versa. Investments that pay out much are associated with bigger risks. Therefore, those who are not satisfied with share market investment and are looking for high yielding investment are placing themselves at more risks.

The last mistake is refusing to vary investment portfolio. It is not advisable to buy into one type of stock in the CSE. Investors can diversify into different kinds of stocks.