Lesson 02 — Common Beginner Mistakes to Avoid
Week 12 · Lesson 2 of 2 · Week 12 — Your First Stock Analysis (Capstone)
Awareness of mistakes is half the battle. Being disciplined about avoiding them is the other half.
10 mistakes that destroy beginner portfolios
"Mere dost ne bola XYZ kharido" — that's not analysis, that's gambling.
A ₹10 stock is not "cheap." A ₹5,000 stock is not "expensive." Price means nothing without earnings context (PE ratio).
A company can show profit for years while bleeding cash. Always check CFO.
The best stock of last year is rarely the best stock of next year. Past returns ≠ future returns.
Putting all money in one stock or one sector.
Great financials + bad governance = eventual disaster.
If you won't spend 1 hour reading the annual report, you shouldn't invest in the stock.
"I'll sell when it reaches my buy price" — your buy price is irrelevant to the company's future.
One bad quarter doesn't break a good business. Check if the problem is structural or temporary.
Random stock picking vs systematic analysis — Week 12 gives you the framework. Use it.
Key takeaway
Awareness of mistakes is half the battle. Being disciplined about avoiding them is the other half.