A financial market that sees thousands flock to it, stock exchange is one of the most lucrative trading domains today. New companies are being birthed every day, and several of those give out stocks. As a stock trader, your job might seem simple superficially, to buy stocks low and sell them higher.
However, there are a number of subtleties to be kept in mind while stock trading. Even small mistakes can cost you a lot of money in the stock market. As a beginner, you will have to be nimble on your feet to make the most out of every trading opportunity that comes your way, and dodge the expensive mistakes you're prone to make!
Here are 5 stock trading errors to keep from making:
1) Buying Stocks Aimlessly:
Different stocks have different monetary values. These values are prone to change and can shift erratically. This is why stock purchasing has to be done keeping in mind the several influencing factors that alter a share's value in the Stock Market. Economic, social and political conditions along with investor mindset are some of the most vital considerations to make while buying stocks.
2) Holding On To Losing Stocks:
Once a particular trend has made its way into the market and a stock's value plummets downward, holding on to it is futile. Given that there are certain instances where certain stocks have risen in value after a recent fall, it doesn't happen every time.
3) Not Maintaining A Journal:
Most successful stock traders have a trading journal. Here, they note down the mistakes made on a trade, how they can be improved and so on. It is essentially used for self-analysis and betterment of one's trading means.
4) Believing In Stock Promoters:
Stock promoters are a bad sign, and as a share trader, you will do well to keep away from them! They sell you bogus information and rob you from right under your nose.
5) Lack Of Emotional Control:
When a share suddenly rises in value, your immediate reaction will be to buy it - that's an emotional response and is common in the stock market. As a smart stock trader, you ought to back your decisions with ample market research and viability checks. Always exercise control over your emotions.
Some mistakes have to be made to learn better, but these will cost you in the long run! Open a Trading Account in Sri Lanka today and get your share trading career up in the clouds - call WesternFX. One of the leading stock brokers in the game, we will provide you with the best share trading solutions. From demo trading guidance to indicators for live trades, get top-tier brokerage. Reach out to us now to get started!
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