Top 5 Common Trading Mistakes

Posted by chetan yadav on June 9th, 2016

 

In this competitive market, the market fluctuates rapidly, so there is a chance to lose of capital by a trader or investor if trading could not do in a proper way.

 

In fact, many new and experienced traders as well,  have made some mistakes while they do trading, according to experts of the market. These points are very common, but ignored every time by a trader, So traders and investors must aware about some basic but very important factors while trading.

 

The following article take a look at top five common trading mistakes made by a trader-

 

1. Have no plan??

 

Most of the traders do trade without any pre-determined trading plan, this will be very risky for your  which you invest in market. Having a proper plan of action always gives you a decent profit from the trading.

So it is recommended to prepare a plan of action before start trading.

 

2.  Expectations are too high, too early:

 

All the new traders want to get success and expect huge profit in a very short time, but it can be said that the stock market trading is not for this kind of people. In addition, success takes hard work, perseverance and  good experience. So it is very important for a trader that, he must have enough patience to trade in because there is no shortcut for success in any field.

 

3. Not Capable to use protective stop loss:

 

The Stock market is very volatile, and could be fluctuates rapidly, so this is very important to use a protective stop loss while trading. Generally traders do not use a stop loss, this is very risky because the stock market can’t be predicted by the normal trader, in that case the particular trader could lose their capital. So this is recommended to use a proper stop-loss.

 

4. Do not over-trade

 

Trading in many segments at one time is a big mistake which generally traders make, especially if you want to recover your losses. So it is recommended to every trader that focus only a single segment, which can drive huge profit with your investment.

 

5. Use a diversified portfolio

 

This is another big mistake which generally made by the traders. Always maintain a diversity in your trading portfolio and do not depend on a single stock or commodity product, a trader must always trade with multiple stocks or commodities.

 

So these were some crucial point which the traders can follow and get sure profit from the stock market. Other than this new traders can hire a dedicated stock market advisor who can provide the trading tips, stock tips, commodity tips and NIFTY FUTURES TIPS to trade in market with minimum risk.



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chetan yadav

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chetan yadav
Joined: June 9th, 2016
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