Share market online trading is one of many methods used by investors to grow their wealth. There are many investors who have made little money and there are others who have gone ahead to make a big fortune from trading. But it is necessary to understand that fortunes are not amassed by reckless trading. It takes time, perseverance and well-planned trading strategies to grow money.
Here are 5 share market online trading mistakes that new investors tend to make in their rush to increase earnings.
Spending too much
In the first trading activity itself, say a new investor earns some good money but it can be just called ‘beginner’s luck’. Unfortunately, sometimes this small fortune can attract the share market online trading investor to put more money without a plan.
Stock market is not a place to gamble with your money. Make money by taking informed decisions. Avoid making the mistake of losing foresight and getting carried away with few successful trading transactions.
Trading without a strategy
Stock market earnings are accumulated over a period of time with strategies and plans implemented by smart investors. Your equity broker or financial advisor can help with the expertise required to make the right investments. Opening a demat account and performing share market online trading is easy but to make money you need to plan your trading activities.
When you start your investment journey, you come on board with an investment appetite. While trading, you need to consider the risks and ensure that you utilise stop-loss strategies. The stop-loss order action puts a cap on the loss that can be incurred. New share market online trading investors generally save money when they successfully implement stop-loss orders at the right time.
Entering multiple markets
You may enter the share market online trading industry to invest in the share market. But once you come to know about the possibilities of investing in multiple markets with your account, you may be lured to investing in those markets. It is true that building a diversified portfolio of investments is a great idea. But to become a successful investor, you first need to understand one industry first, gain your expertise and then move on to diversify your portfolio.
Check this CNBC video of Warren Buffet sharing few tips on long-term investing
Being too enthusiastic
As a new investor, it is possible that you get too excited to perform trading. Chances are that you find yourself trading frequently whether there is a good trading opportunity or not. Again, this may not be part of your share market online trading plan. This leads to not following a trading strategy or switching trading plans frequently without really taking advantage of the strategic investment path you created for yourself.
To avoid share market online trading mistakes, it is better to rely on the guidance provided by a trusted investment advisor like Tradebulls. To learn more about share market online trading services by Tradebulls, kindly visit www.tradebulls.in/equity-and-derivatives
Feel free to share your experience and inputs on the mistakes made by new investors by posting in the comments section.