Stock market today: Four important factors that retail investors often miss when chasing profits

livemint.com:

stock market The misconception surrounding penny stocks primarily revolves around the perception of them being an easy route to quick wealth. Penny stocks are often misunderstood as low-priced stocks that have the potential to skyrocket in value, turning small investments into significant gains in a short period. However, the reality is quite different “Penny stocks lure investors with get-rich-quick dreams, but fundamentals ultimately determine fates.

Rather than names with tantalizing stories, seek companies with solid leadership executing viable plans. Quality large-caps like HDFC Bank, with proven trajectories spanning decades, offer similar breakout potential minus the uncertainty," said Ashish Aggarwal, Director, Acube Ventures FOMO arises when investors witness others benefiting from a specific investment and worry about missing out on potential profits if they don't act promptly. This fear can prompt impulsive decisions driven by emotions rather than thorough analysis.

Investors might feel compelled to enter the market or purchase a particular stock merely because others are doing so, without considering whether it fits their investment objectives or risk tolerance. "While money may have no memory, markets and stock prices often do. Prudent investing means learning from the past, not just chasing what's hot.

Have the wisdom to spot when that rockstar stock has played its hit single and likely faces encores sending crowds home. Timing matters. Don't let fear of missing out goad you into "buying the peak" as that hit fades.