Demat account: 10 common mistakes to avoid while investing in stock market

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A demat account serves as a digital repository for your stocks and investments, eliminating the need for physical paper certificates and providing convenient management options accessible via computer or phone. It's an indispensable tool for individuals engaging in stock trading activities in India.

However, alongside the convenience, there's also been an uptick in fraud cases associated with demat accounts over the past decade. This rise in fraudulent activities can be attributed to the influx of new investors entering the market without adequate knowledge of safeguarding their investments.

While stock market regulators and brokerage firms continuously strive to implement measures to curb fraud, it remains imperative for demat account holders to exercise caution and avoid potential pitfalls that could lead to financial losses. Being vigilant and avoiding mistakes is paramount to safeguarding one's investments in today's dynamic market landscape.

When using a demat account, it's crucial to be mindful of certain common mistakes to avoid potential pitfalls and ensure smooth and efficient management of your investments.

Not Keeping Track of Holdings: Failing to regularly monitor your portfolio holdings can lead to missed opportunities or losses. Stay updated on the performance of your investments and make informed decisions accordingly.

Ignoring Security Measures: Neglecting to safeguard your demat account login credentials, such as username and password, can expose you to the risk of unauthorised access and potential fraud. Ensure to use strong, unique passwords and enable additional security features like two-factor authentication.

Overtrading: Engaging in excessive buying and selling of securities can result in higher