Stock Market Basics · Lesson 14 of 14 · Updated October 2026 · 6 min read
Most beginners lose money not because the market is unfair, but because of a few avoidable habits. Kosh made almost all of these. Here they are, with what to do instead.
In short: Know why you buy, size small, invest for years, and never borrow to invest or to hide a loss.
The mistakes
- Buying on tips. A friend’s tip, a WhatsApp group or a finfluencer is not research. Ask: why this company, and at this price?
- Thinking a low price means cheap. A ₹20 share isn’t cheaper than a ₹2,000 share. Look at earnings and valuation.
- Putting too much in one stock. Spread money across several companies, or use index funds.
- Trading instead of investing. Frequent trades pile up charges, tax and mistakes.
- Betting on results day. Prices already price in expectations. It’s a coin toss with costs.
- Using leverage. Intraday margin and F&O magnify losses as fast as gains.
- Averaging down blindly. Buying more of a falling share only makes sense if the business is still sound.
- Panic selling in a fall. Markets fall regularly. If the business is fine, a fall can be a chance, not a disaster.
- Investing money you need soon. Keep an emergency fund first, and invest only money you won’t need for 5 years or more.
- Borrowing to invest or to cover losses. This is how a bad year becomes a decade of debt. Never do it.
A checklist before every purchase
- ☐ I can explain in two sentences what this company does and how it makes money.
- ☐ I’ve looked at at least 8 quarters of results.
- ☐ Debt is manageable and cash from operations is positive.
- ☐ I’ve compared its valuation with similar companies.
- ☐ This position is a small part of my total investments.
- ☐ I’m using my own money, not borrowed money.
- ☐ I’d be fine holding it for 3 to 5 years even if the price falls 30%.
Where to go from here
Start with an emergency fund, then a monthly SIP in a broad index fund. Add individual shares slowly, using the lessons in this course. Use our savings calculator to see how regular investing adds up.
Common questions
How much should I invest in individual shares?
Many beginners keep most of their equity money in index funds and only a small part in individual shares while they learn.
How long before I know what I’m doing?
Give it years, not months. Track your decisions and the reasons for them so you learn from both wins and losses.
See all 14 stock market lessons
Education, not investment advice. Figures and rules as of October 2026; check the latest before you act.