Wednesday, 20 April 2016

5 Common Mistakes Made by Investors while Trading

There is no denying the way that stock market is 'the spot' where individuals make fortunes however it likewise 'the spot' where fortunes are lost. There are measurements that express that less than 5% of the investors who end up making money.

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But most investors lose their money because of little mistakes which can easily be overcome. The individuals who win are the ones who have learnt from their mistakes. 
One of the most common mistakes that a retail investor makes is that they give away the decision making of initiating a trade to someone else. In this way, they forego the right to ‘own’ the trade. But in doing so, they have lost their well deserved money. 

Every successful investor on the contrary takes complete responsibility of his trades. Buying and selling are totally at his discretion and he doesn't give any other individual the right to take choices on his behalf.

Most unsuccessful investors get into a trade because it is in the news or it is moving higher or lower. They have little thought of the risk they are taking and the reward to expect whereas successful investors have a very good idea of the risk and reward to expect.

They know their exit points even before starting the trade. After all it is the exits that matter most. Benefit on a trade till it is booked is only a notional profit. Unsuccessful investors have a fear for taking losses it is as though accepting publically that they are incorrect. They would rather wait for years to sell at their entry price rather than exit with a small loss and proceed onward to get the next opportunity. The market is never short of opportunities.

The principal thing that a trader or investor needs to learn is how to save his capital. The moment he learns how to save his capital then learning how to build it is an easier job.


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  2. Yes I agree these are some common mistakes that mostly investors make. To cope up with these and earn good profit a trader should be well updated with market movements. Epic research helps traders to do so.