Are you a beginner in the share market? Do you want to know which mistakes did by beginner traders? then you are in the best article about it because in this article I discussed 5 common mistakes of beginner traders in the share market. After reading this post you must know what mistakes you never do as a beginner. I am Prabhat Kumar, share market exports for the past 5 years. Let’s start.
5 Common Mistakes Of Beginner Trader In Share Market
The new traders who come to the stock market have to face a lot of losses in the beginning. The main reason is not to learn about the stock market. But some traders who are new, make small losses, but some traders make very big losses in the market and after that, they leave the stock market. In this post, we will talk about the new trader What are the 5 biggest mistakes? Which five things if the new trader does properly, then he will not go into loss and will be able to profit. So let’s start this post and learn.
If we follow the five things that all traders who are successful in this field get to learn from them and if you practice those five things then you will not lose your money in the stock market and as such Your practice will be good, and you will start making a profit. I have mentioned these five things below, using which you can avoid stock market losses.
5 Common Mistakes Of Beginner In Share Market In 2022
- Trade-In Intraday: The biggest mistake of new traders who come to the stock market is that they start trading intraday directly without knowing the technical and fundamental analysis without understanding the stock market. In which they get very much loss. If you are a trader, then you must know that intraday trading is the most difficult trading that only the experienced trader should do. New traders should not do intraday trading, they should do positional trade.
- Use Indicators For Trading: The second biggest mistake a new trader makes is that he does not learn how to read the chart, that is, the price action method and starts trading directly on the indicator which is not at all true for the new trader. They should initially follow the price action and understand how the candles are being made. One should know about supply and demand methods and many other things which come with the price action, they should be followed.
- Over Trading: The third biggest mismatch of a new trader is that if he trades in any stock, he interjects it without any strategy and then exits in the loss, he always over-trades, which causes his losses to increase and They lose more in the process of recovering loss. So the new trader should take care that there is no loss or profit over-trading. They can determine the number of trades I want to make. Some people make two to three trades, some do the same trade, then some people do not train even if they do not get a good setup. So never do more than two or three trades in one day.
- Trade On Other Persons’ Call: The biggest mistake of a new trader is that he trades on a call given by someone else. This mistake is the biggest mistake, the new trader should always trade on his own. It should be analyzed by itself, even if they are lost due to their analysis, it is good. Because we are not even able to learn if there is loss due to the call given by another. But if they lose from the trade they have made, then they learn, then the new trader should always trade himself.
- Don’t Follow Money Management And Risk Management: The fifth and final most important thing for a new trader is that they should train only by following money management and risk management. It often happens that when new traders come into the stock market, they do not follow money management and risk management at all. Due to this, he gets an unlimited loss and he loses the entire capital.
Above we have explained in detail 5 very large mistakes of the new trader in the stock market. Read it carefully and implement it in your training. When you are able to implement these five things in trading, then I am absolutely sure that you will not make a loss in the stock market after this, we hope you will like this post. And if you have any questions related to the post, then you can ask us in the comment and share this post so that we can reach more people, thank you very much for reading this post.
I am a share market expert for the last five years. I have expertise in technical analysis, and fundamental analysis of stocks, and assets. On this website, I write content like analysis of shares, predict future targets of shares based on analysis, simplify technical analyses, and intraday trading.