What are the mistakes that new traders do while trading?

#31
The common mistakes every new comer does . is without any knowledge they enter in market . but apart from that they have to be take knowledge which they can get from reading books, learn technical and fundamentals of market know the basic formation and the working processor of the market , how the stocks move and on which parameters.
the basic and most common factors they should learn ad remember for the life is.

1. Technical and fundamental knowledge of market.

2. learn making own system and do backtesting for that at least for 5-10 years of previous market data , this will help you to know that in previous any scenario how your system perform

3. Risk management. risk should be predefined for any kind of trade and investment. it can be maximum 5% for your investment in intraday trades of in positional according to your risk bearing capacity . after loosing this amount you can sleep peacefully without any panic.

4. Risk reward. the risk reward always should be 1:2 or 1:3 this will help to get maximum gain in the market and will generate the confidence level .

5. Conviction - conviction will only comes when you trust your system and let do work on your trusty systems. do not invest and trade in feelings.

6. learn to book small loss if any positions goes against your trade.
 
#32
They over trade if once they gain a good response from trading or gets demotivated if they face loss initially. Being constant and learning on every step is very important for new beginners.
 

kaly422000

Well-Known Member
#33
by taking all the steps like good strateji, good stop loss and target before enter, well understanding of technical and present market behavier ,there is another skil that is must ,ur mind power. any trader sud be with less emotion to trade as if trade is in ur favour or against ur favour. concentration sud be on process and not the profit or loss
 

stoch

Active Member
#34
The biggest mistake is to ignore stop loss settings because in this case it'll be impossible to avoid huge loss, getting your trading out of control. It's very dangerous approach which can be done only if you don't use leverage
 
#37
Don't flow in emotions, as far you think of trading. Emotions are the worst enemy of a trader. Keep calm and focus yourself on execution of trades properly with a proper trading strategy.
 
#40
I believe the biggest mistake is following the herd mentality. If a majority of investors are investing in a particular stock, it’s not necessary that you too have to do the same. You must invest according to your financial goals and risk appetite.
 

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