Share Trading Mistakes to Avoid

by Nikesh | Last Updated On September 27, 2022

Share Trading Mistakes to Avoid – Beginner Investing and Trading Mistakes in Stock Market.

Share Trading Mistakes to Avoid – Beginner Investing and Trading Mistakes in Stock Market. Learn about some common and biggest mistake in stock market, how to avoid them and be successful in Stock Market Investing and Trading.

Table of Contents

Common Share Trading Mistakes to Avoid

Share Trading is a business where even the slightest mistake can lead to huge loss. Investors must learn common share trading mistakes to avoid. They must learn from their own past experience, experiences of friends and family members and other market experts. It is move important in case of Intraday Share Trading.

Here are some tips and advice for a beginner in Stock Market in India on how to avoid common stock market mistakes:

Quality Vs Quantity: Buy only quality stocks. Do not run after cheap and poor quality stocks.
Cut Losses: If your stock is continuously falling then book loss at 7% – 8% below your purchase price. This will protect you from further loss.
Follow The Market: Yes, follow the market and try to buy at the right price. Learn how to do Fundamental Analysis of a Company and How to Pick Best Stocks to Buy in India. This way you increase your chances of making profit and in case the market goes against your stock, you will suffer minimum loss.
Low Stock Prices: If price of a stock is too low, it doesn’t necessarily means that you can buy it. Do all your homework before investment.
Be Practical: Don’t be emotional is stock market business. Be practical. If you have bought a stock for Rs. 200 and it comes down to Rs. 190. Sell it off and close your position. Buy it back when the market conditions are in favour of the stock.
Invest for Long Term: Never go for short-term Equity Investment. Invest for long term.
Portfolio Management: Decide and create your investment portfolio. Investing without a planned portfolio is not professional. Have a diversified portfolio.
Set You Goal: Set your investment goals. Decide when and why do you need the money back and invest accordingly.
Monitor Top Mutual Funds: Keep an eye on top mutual funds and where they are investing money. Fund managers at mutual fund companies are highly qualified and experienced people. They do all expert study and research and study the market before investing. Spot stocks where these companies are investing and do some homework yourself and invest in those stocks.
Have Patience: As a Beginner, never be in hurry in stock market business. This business demands patience. Do not panic.
Monitor Stock Market: Monitor the stock market and current affairs in the country. Monitor top news and act accordingly.
Avoid Margin Trading or Intraday Trading: Margin trading or intraday share trading can be highly risky. Avoid trading.
Book Profit at The Right Time: Book your profit at the right time. Never be too greedy.

Understand:

FAQs: Share Trading Mistakes

What are the Mistakes in Trading?

Here are Top 10 Mistakes in Trading:

#	Mistake
1.	Trading without Planning
2.	Speculation
3.	Trading Too Fast and Too Much
4.	Not Using Stop-Loss
5.	Chasing the Trends and Crowd
6.	Trading for Revenge
7.	Holding Too Many Positions
8.	Ignoring Risks
9.	Investing without a Time Horizon
10.	Letting Losses Grow with Hope of Recovery

What are 4 Common Investment Mistakes?

4 Most Common Investment Mistakes are:

Investment without Planning or Goals;
No Diversification;
Buying Too Often and Too Much;
Not using Stop Loss; and
Paying too much in Fees and Commissions.

What are the Biggest Mistakes a Trader Should Avoid in Stock Trading?

Following are the 5 Biggest Mistakes a Trader Should Avoid in Stock Trading:

No Investment Plan or Goal: Always prepare your Investment Plan and Goals. There is No Hurry.
Holding Loss Making Stocks: Do not hold position in loss making stocks. Sell then off @ -8%
Chasing the Trends and the Crowd: Do not run after the Trends and the Crowd. Do you own Analysis and Research and then Invest.
Not Putting Stop-Loss: Always use Stop Loss to avoid too much losses.
Focusing on Short-Term: Investment is Long-Term Game.

How can we Avoid Making Mistakes in Trading?

Avoid unrealistic hopes and speculations. This is most common mistake that beginners make. Avoid eye-catching fake advertisements. Follow all the rules mentioned in this Article.

Conclusion

Most beginners in Share Trading and Stock Market make some common mistakes and gradually learn with time and experience.

Remember, this Share Trading Business is Not a Get “Rich Quick Program“. Sometimes a wrong selection of stocks and investing all your saving in 1-2 Stocks can do blunders for you. So better Learn Share Trading Mistakes to Avoid and then go for Investing or TRading in Stock Market.

I hope this Article was useful. Please SHARE with others. Thanks!

What are the Mistakes in Trading?

What are 4 Common Investment Mistakes?

What are the Biggest Mistakes a Trader Should Avoid in Stock Trading?

How can we Avoid Making Mistakes in Trading?

Also Read:

17 Responses

Leave a ReplyCancel reply