Stock market investors are either very confident of their investments or extremely wary of the smallest steps they take. However, the truth is that you can never be too cautious while investing. That being said, simply avoiding some rookie mistakes can help you go a long way in making good investment decisions. You should also not stay clear of investing in the stock market simply because a couple of investments went bad. The right approach is to learn from the previous mistakes and ensure that you have better insights for your future investments.

Here are some of the common mistakes to avoid and some important tips for you to follow as a stock investor the next time you invest:

• Timing the market
  One can never stress enough on this point, which is why it makes it to the top of the list of important tips for stock investors. Nobody knows where the market is headed in general, so you should not speculate whether the market is going to make profits or whether it is going to plummet. As an investor, you should only be concerned about your own investment goals and not about volatility swings. It is important for you to spend more time in the market rather than timing the market as equity investments provide effective returns if held for a longer tenure.
• Not understanding the investment
  If you do not understand the business model of a particular company, do not invest in its stocks. Even if you’re building a huge and diverse portfolio, ensure that you gain some knowledge about the company you wish to invest in and about the stocks it represents before putting in your money.
• Getting emotionally attached to the company
  Buying stock in a company is simply an investment and nothing more. You cannot be associated with a company as a stockholder and have a sentimental attachment to it. You should always understand and explore the market positioning of the company and how it is fairing in the market before putting your hard-earned money into it. If you are holding the shares of the company for any reason other than making money, you should consider selling them.
• Running out of patience
  This is a major difference between young and inexperienced investors and seasoned investors. Being patient is, undoubtedly, one of the most important tips for stock investors. There will be a lot of times when there is noise in the market and a lot of people, right from financial gurus to investment bankers, will tell you that the market is volatile and you should sell or dilute your stocks. However, the final decision lies with you, and it is upon you to decide the right time to liquidate your stock. The portfolios will only earn profit over the long run as stock markets are not designed to help you make quick money. So, you should keep realistic expectations and never make knee-jerk decisions due to market fluctuations.