Posts Tagged ‘Money’

Suicidal Stock Trading Mistakes – Some Highlighted Ones

Thursday, July 8th, 2010
NYSE's stock exchange traders floor before the...
Image via Wikipedia

There are a bunch of stock trading mistakes that can be said suicidal as they can make you lose a lot of investment in a short period of time. It might be a fact that may be you already know them or may be not but knowing about them prior to falling behind can save you a lot of money, grief, and time.
First thing which must keep within you mind as a stock trader is never to trade with the money that you cannot lose at any cost. This might sound stupid or rare to you but this mistake is being made by numerous stock market traders; it can be said as desperate trading too. You cannot put the money on trading that can get you out of the market if the trade goes down. Traders also make another common mistake of making trades without having any strong stock trading plan in mind. Just like no one can start off a business without a business plan if he or she wants success; same is the case with stock trading as well. You need to be creative, organized, maintained, and stay side by side with your trading plan no matter what. People in the stock market can spend an hour thinking what to eat in supper but do not spend even a few minutes planning on their next trade. You cannot just shoot from the hip, this is the stock market; not having plan means game over.
You should not at any cost keep unrealistic expectations. People who are new in the trading business can seriously end up facing a lot of frustration only because they were expecting something unrealistic. You might have seen people making stock trading look like a child’s play but they are professionals, they have years of experience and expertise, you are new and amateur; learn things. You cannot just day dream that tonight you will walk off with a million dollars.
Another suicidal mistake traders make is, not carefully understanding the risk involved in a particular trade. As a new trader, it is alright to go for small hits and not worry too much about risk but it cannot be ignored all the time. Even the most successful stock market players go through a chain of losses and so would you at some point; a wise move would be to understand the risk involved ahead of time.

Enhanced by Zemanta
Pages