What are the mistakes that new traders do while trading?

[Bhavya Gulati]

It is normal for new traders to make mistakes. But it’s wrong if new traders don’t understand what they have been doing that’s leading to losses.

 

[SiddhiBarvadekar]

Every trader makes mistakes. Whether someone is new to trading or has been trading for decades, they will make mistakes. Some errors are more expensive. Some mistakes are difficult to forgive. Ignoring a mistake and repeating it can determine a trader's success or failure. These are the mistakes traders do while trading:

1. Trading without a trading plan.
2. Trading too much and too soon.
3. Allowing emotions in trading.
4. Not using stop loss order.
5. Taking too big positions.
6. Over leveraging.
7. Revenge trading.
8. Letting profitable trades turn into losses.
9. Not maintaining a trading journal.

 

[Kusum Sarkar]

Most beginners lose out of curiosity. They have no idea about how the market works but still expect to trade well and make huge profits. They set highly unrealistic expectations and head on to make them real with unnecessary risks and losses. Sometimes, they trade too much because of FOMO and sometimes, their fear doesn’t let them open trading positions. There is no consistency in their trading and so, no consistency in their profits.

 

[Ananda Gulati]

Trading without proper knowledge and plan is the biggest mistake a beginner can make. Every other mistake can be corrected once you learn and gain experience. Market knowledge is a must. Also one thing I can tell you from my personal experience is that you should never go after the over hyped stocks. Only pick your stocks after proper research and keep your portfolio diversified. Good luck for your journey ahead.

 

[MahindraSatrujit]

New traders lack knowledge and experience. But still, some of them are so confident about their financial skills that they want to take home all the money. Since the market is stronger than any trader, they get eliminated easily. Making money in the stock market is a matter of developing an understanding of the market. If you fail at it, you will fail at trading.

 

[Aditi Tamhanakar]

I will list down some mistakes which I made in the past as a new trader.

• Deviating from my original strategy and chasing profits
• Looking for shortcuts that does not exist
• Not understanding the concept of trading psychology
• underestimating the risk and potential losses

 

[Hulu Girl]

One mistake that all traders make is to trade without knowing the forex market. You must first learn about Market Analysis and later you could invest in the Forex Market.

 

[HirendraRamamuthe]

I don’t think new traders lose because they lack knowledge. They lose because they don’t want to put in an effort to make money. They are so influenced by fake advertisements that they believe in getting free money. Some new traders don’t even want to find reasons for their losses because they have the market to blame.

 

[Kanwal Badakar]

Newbies mostly do not understand the fact that if they don’t place stop loss, they’ll lose more than they’re supposed to and it will just empty their account. Risk management and a good plan has to be in hindsight because it is important to stick for at least a few months in the market. There are scammers, they shouldn’t get carried away with sweet talk.

 

[Rajendra Vaikar]

There are many common mistakes that new traders make. And most of them can be avoided with proper learning and planning. So just focus on understanding the stock market and technicalities of trading. Prepare well before you get into trading stocks and pay attention to managing your risk well.