Saturday, September 17, 2011

What are the General Trading Mistakes in Stock Market?

What are the General Trading Mistakes in Stock Market?

1. Lack of Knowledge - Without knowledge you cannot achieve anything in Stock Market. Read books which are related to stock market. Be a member in Investment Club; make participate in Stock Market Technical Classes. Discuss in Forum about Share Market with the good Technical Analysts, Traders and Investors.

2. No Trading Plan - To achieve something, you need experience in any field, of course in Share Market. Preplan everything. Do paper work for few days and then you will get an idea to be in Share Market Field.

3. More Expectation - In Stock Market, Never expect more Profit in a short Period of Time. Don't expect your trading must be 100% accurate at all time. It is completely dependent up on the Stock Market Volume. Stock Market can turn into any Position. So be careful in your Trading.

4. Watching other business - Don't listen to others while Trading in Stock Market. Don't trade by coping by your neighbors, family and friends. Don't think that others are experts in Stock Market and you have nothing knowledge in Share Market. Be Patient while you trading in Stock Market.

5. Don't get the way - Never let your emotions and ego into Stock Market. During Share Market, It is really hard to control your emotions, but have to be Patient. Don't be Over Confidence. Sometimes it is hard to understand the Stock Market Situation. Be discipline. Trade Slow and Steady. You will be succeeded in Share Market.

6. Poor Money Management - Most Traders don't understand their own situation. Trade the segments under your investment. Select the schemes which are suited to your investment. For example you have Rs.1, 00,000 of Investment you can trade Bank Nifty Future, Equity and Stock Future. If you have the Investment of Rs. 50,000 you can trade Stock Option, Nifty Option, and so on.

7. Trading in Single Direction - More new traders, will trade only in one direction. This is Profitable in raising Stock Market Situation. But it is wrong. You must learn to trade in both sides of Stock Market. Sometimes it will be decreasing volume of Stock Market. So you must trade in both situations.

8. Over Trading - Don't over trade. There is a limit for your Trading in a day. So trade with your limit in Stock Market.

9. Profit early - Because of fear, exit stock Position early takes Profit too early. It is Nonsense. Don't let your greed and emotions into the Stock Market Field while you trade.

10. Letting Profits to run - Greedy persons, never stop their Trading. They let the profit to run. Cut your Trading with the limited level in Stock Market.

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