2. Not having a proper strategy

When you get a lot of opportunities, take it one at a time, it is easy to start jumping from opportunity to opportunityand  it will become difficult for you to handle them. Evaluate them and most importantly choose the best out of them. One way to get out of this problem is to always to take the right investment decisions.

The second way to avoid this problem is to have a proper strategy. You should have specific goals, amounts that should be invested, target return on investments and limits. When you as a small investor will have your own strategy, you will come to know whether the current opportunity will fit you or not.

3. Doing what others do

Being unique is one of the best mantra for smart investing. But it is often seen that small investors follow the crowd and lose much in stock markets. You need to be alert about the ups and downs happening in the market. It should not be like when you read a newspaper and know about the falling stock market as it will be too late then.

When everyone starts investing on the same thing, sooner or later it will get devalued. For instance when everyone starts buying houses, you try to invest somewhere else.