A glimpse at the general errors made by traders in the stock markets leading to losses. So you are a newbie retail trader? Here are 5 common mistakes made by retail traders. Avoid them and flirt with profits in the markets!
# 1 Being Greedy
This is a common mistake many a trader makes! The common myth is that you can become an instant millionaire by trading in the exchange. Nothing is farther from the truth. Many retail traders dabbling in the markets believe in this myth, turn greedy when they see some profits, and end up losing all their money!
# 2 Not making own decisions
Many traders do not learn the skill of forecasting and hence heavily rely on others for buy or sell calls. A very common mistake leading to a lot of losses!
# 3 Inconsistent
Inconsistencies in both trading and enriching your knowledge of the markets are a sure step to failure! This is a common mistake committed by many traders, which eventually leads to a lot of losses!
#4 Affinities to particular stocks
Many times traders get attached to particular stocks, most often penny stocks and do not sell them even when they are making big losses. They keep making excuses to postpone the selling. This eventually leads to big time losses!
#5 Trading without stop-loss
Trading without a stop loss in mind is a big mistake retail traders do. If you do not have a stop loss figure in mind and if you do not sell at stop loss, failure is for sure!
Avoid these five mistakes and make huge profits in stock market!