Major Mistakes that Beginners make while Trading

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Major Mistakes that Beginners make while Trading

Many people make mistakes due to their careless. All of them had a greedy mind. They select ways for earning money very fast. And doing work without thinking. It may lead to them big mistakes. So work carefully is the success of everyone’s life.

In that trading is one of the most advanced system for earning money. Participation of traders in the financial markets  is buy and sell stocks, futures, forex and other securities, and closing out positions by making small, frequent gains. Like so many investors there are also small, independent traders such as an independent trader working from home, office to the institutional player. They move tens or hundreds of millions of dollars worth of shares and contracts each trading session. It is very exciting to trade in the markets, both as a part time trader to build additional wealth or as a full time trader for a living.

Trading is a good way for achieving money but you need to follow it in a correct way. Then only you will achieve the goal. There are many successful traders. Trading can be done as a part time job to add some additional money to your regular salary. Consider trading as a passion rather than a hobby. Most of them win in that but greedy mind will have lost their money. It is not because of trading only because of their greedy mind. The biggest mistake that beginners make, especially when they win for a period of time is thinking that the market is going to stay in the same character and they can always keep winning with the strategy that is working. In trading most people trade with fear mind so at the time of sell or buy suddenly back our mind & got tendency to stop the trade. It is the large mistake that make in our trading; we should trade with free mind. Here’s a simple rule to remember: When you feel the fear, lower your risk. Don’t think about it, just does it. Do it right then and there.

The other mistake happen is that for earning more money people will disobey the rules & regulations of trading platform, it may lead to big loss. It is because of their greedy mind. Also they trade with more money for getting big profit but unfortunately they loss their full money. For example once we trade with 100/- and get profit of 500/-. Then their greedy mind think that when I deposit 50000/- I got 100000/- profit & deposit that much amount, unfortunately they got loss & lose full amount within second.

The other mistake is that trade with emotions mind such as fear & greed. A very demanding occupation is trading, but the “luck” experienced by some new traders may lead them to believe that trading is a short cut to become rich all of a sudden. Avoid such and overconfidence excessive risk-taking otherwise that may culminate you to a trading disaster.You should trade only by understanding all about the trading, don’t be hurry. The other mistake mostly happen is people buy/sell shares of unknown companies by hearing the word of other people. It is also a big mistake.

The following are the major mistake that beginners make while trading

  1. Trade with emotions mined such as fear, greed etc.
  2. For earning more money people breaking the rules & regulations of trading.
  3. People buy/sell shares of unknown companies by hearing the word of other people.
  4. Trade without understand all about trading.
  5. Trade with huge money without thinking.
  6. Assuming that I know everything about trading & do big mistakes.

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