Trading Mistakes to Avoid at All Costs
Every person who comes to share market to earn money thinks that profit making is easy in the share market. He dreams that in a small time he can earn a huge amount of money in the share market. He tries his best to make a profit in each trade but it found that after three-four months of trading 95% of new traders loss all trading capital & they curse the share market for the loss.
They start saying that share market investment is like gambling & few of them say that their luck was not with them and then these people advising others that share market is not good for investment then they never invest in share market in the future.
If we analyze what are those mistakes which is done by every beginner in share market and if we make a list of those points we found that there are some common mistakes done by every individual who quit share market after some time we found following common mistakes that you may probably still making.
Quick money: Every newcomer who comes to share market think that a share market is a place where money can be double overnight. Everybody wants to make fast money & he does so many wrong trades resulting he lost all his capital in very less time.
Making money is easy: Every person who comes to the first time in share market think that making money in the stock market is very simple and easy but he realizes after a time it is really hard to get profit from trading.
Intraday trading: It is very surprising that every person who comes to share market want to do intraday trading first and want to earn money on a daily basis. It looks simple to them.
Always trade in Penny stocks: It is found that most of the time beginners trade in Penny shares. They think that price has been dropped from very high price and there is little risk for the down side in the stock price.
Works on advice: Many traders always search for advice for making quick money they make trades on the basis of their friend’s advice or SMS from the advisory company.
Luck: Many traders think that they lost money because there luck was not with them.
Never try to get learn: Many of the beginners never try to get educated about trading rules and always seek for the shortcut and advise.
These are some common mistakes done by beginners in the share market. Making mistakes is not bad at all and it is part of the process, but when mistakes are made repeatedly, bad and unprofitable habits are formed.
Actually, they never did homework before coming to share the market & surprisingly that most of the trader comes to share market on the advice of their friends and relatives and put their all capital in trade without thinking. This bad behavior can eliminate you from stock market.
It is our advice that if you are not still not invested in share market then please first read about share market and what is the risk involved in investment in share market and what reward can you get in the Long term then you decide your choice. If any person who lost his capital in share market reading this article should definitely think about the mistakes he/she has done in his past. Try to avoid again in future by getting an education first about the basic Knowledge.
Awareness is the first step towards improvement, Hope this above real-world advice will help you.