What are the mistakes that new traders do while trading?

#91
New traders think that forex is an easy way of making money. Neither they study well nor do they analyse the market before opening trading positions. This often leads to wrong decision making and losses.
 

stoch

Active Member
#92
Newbie traders make lots of mistakes and the biggest one is trading without stop loss. Trades without stop loss should be done with small or no leverage and should be infrequent ones because buying high or selling low requires patience
 
#93
Taking too much Positions. There is no doubt that every trader is thinking about the appeal of big winning trades. The temptation to take a large position (thinking it will be a successful trade) is always there. A trader's money management is crucial to keeping them in the market.
 
#94
Generally, many new traders think that trading is easy. They often forget the importance of emotions and assume that they will get rich overnight. They do not practise enough on a simulator or even neglect it completely. Their emotions drive their trading. As they are new to trading, they need to work on their consistency and discipline.
 
#95
I think a lot of beginners have unrealistic expectations. They don't want to put a lot of effort into learning and expect to start making a significant amount of money quickly. Once they realize that this isn't the reality, they give up and move onto the next thing.
 
#96
Beginners mostly do not follow a trading plan which is what makes them feel lost all the time, early in the game. The risk involved is not a joke so newbies must dedicate enough time towards learning before taking a risk. SL is important.
 
#97
The most common mistake is not doing enough research about the market. You must know the market well in order to survive as a trader. Being profitable takes time as your skills develop with experience. The most important thing is to never underestimate the risk and trade with caution.
 
#98
I am a new trader and want to avoid the mistakes done by new traders...guidance is appreciated...
New traders generally try to average out the price when the stock is in the down trend. And keep on increasing their losses, thinking that some miracle will happen and the market will reverse. Unless you know the technical analysis very well, do not try to time the market. Instead, place a stop loss while placing your order to buy or sell and stick to it strictly. Do not modify or delete it when the stock trend is not on your side. Hope, I have answered your query.
 
#99
I am a new trader and want to avoid the mistakes done by new traders...guidance is appreciated...
You should keep a good balance between the traded volume & the stop loss. Lets suppose, you want to place a stop loss at rs.90 and the share is trading at rs.100. Then you have a margin of rs.10 per share to take loss. Lets suppose you have rs.1000 to take risk. Then you can buy 1000/10 = 100 shares in total. do not try to over trade beyond your capacity of taking risk. It the main thing i have learnt from years of my experience in stock market.
 
One of the biggest mistakes that new traders make is to go by the crowd and rely upon collective opinion. No, as a trader it is your duty to do your own research. Dig deep into the company history you want to find, and analyse the historical performance data of the company before you choose to buy its shares. Do your own research, don’t rely on others' opinions. That is the wrong mentality, and that way you are giving someone else the reins to control your trading.
 

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