Trade in stock is one way to make money. It is not an easy way if we don’t have knowledge about it. In this article, I’ll share 14 common mistake by trader.
I got this 14 point from one of Telegram Group that I’ve join. Let’s read and follow the guidelines
1. Trading with too little capital (relative to costs of commissions).
– If you want to trade, you must know the minimum money to use. I’ve being go to seminar and the speaker said the minimum is up to yourself.
As I’ve experience in 4 month, there’s a minimun for trade. I’m suggest that you must have minimum RM1,000 to spend. Buying a stock below than RM1,000 will cost you lose money as there’s a commision for remisier that need to spend for buy and sell.
2. Overtrading when there is nothing to do.
– You must know when to trade. Don’t over excited to trade. Get your plan.
3. Averaging into losing trades when its not part of your original plan.
– Money people panic and change their plan. As example, if they lose for first time they just change their plan.
4. Entering into a trade without exit plan.
– It is important that you need to have cut loss while enter the stock. It will help you to minimize loss.
5. Entering into a trade risking more than 1-2% of your total capital.
– That’s the importang of cut loss. You must follow the plan and your cut loss.
6. Entering into a trade based solely on someone’s tweet.
– Many people just follow without study the stock they buy.
7. Trading without understanding what edge you actually have.
– Get knowledge before enter the stock market.
8. Trading to get back gains (revenge trading).
9. Thinking trading is easy after going on a winning steak.
10. Thinking the market is trying to get you after getting stopped out .
11. Mistaking Luck for real skill or edge (very difficult to identify).
12. Blaming anyone but yourself for your losses or performance.
13. Letting outside media or opinions influence your trading strategy.
14. Thinking Just because you “are a trader” that u need to trade.
That’s common mistakte by trader especially for those newbie. I’m also a newbie and I think this article is really good for us to follow.