Do you trade in the stock market on Stock News? Avoid five common mistakes to earn money.

There are many traders in the world earning money successfully from the Stock market. Though there is no guaranteed way to earn money in the stock market, one can always avoid some common mistakes and minimize the losses. If you are a trader, then you have to have a good knowledge in the stock market both Fundamental as well as Technical or you should be under the guidance of an expert to earn money from the market.

I have noted down five common mistakes that traders should avoid while trading in the market which will definitely improve the wining ratio in their trades. But if traders don't avoid below mistakes then certainly the volatile market will not only wipe out the capital invested but also throw them out from the stock market.

 stock market five common mistakes
Stock Market Trade Avoid five common mistakes 

Below are the Five common mistakes that one should avoid:

Do not trade blindly on the recommendations: It is a very common practice that traders blindly trade on recommendations of analyst or even unknown person. Trading based on Whatsapp call, stock news, SMS call, or even subscribing Indore based call is always proved as a wrong investment or trading. It is advisable that one should authenticate the stock news or calls before taking any decision of investment, or should avoid this kind of trading to sustain in the stock market for long-term and earn money in the market. Traders should also check the fundamentals of the stocks before placing any order. Traders are not advised to trade in F&O if he/she is not having any knowledge. If a trader is taking a recommendation from an expert then one should check the performance record of that analyst for last 12 months minimum.

Do not over trade in the market- There are traders who set their profit target on a daily basis and trade multiple times in a day to reach the target. These indulge an over trading, for multiple trading throughout the day with limited capital means over leveraging and that is a very risky proposition. High leverage means higher risk and if the market is not in favor then this kind position always washout invested capital. Making huge position is always risky and if one carry forward for the next day then the risk multiplies. One should always avoid this kind of risk to stay in the stock market for the longer term. The expertise can take leverage but should also follow strict stop loss and minimize loss which he/she can bear.

Set target and book profit regularly- One has to make a plan and strategy before taking a trade like at what rate to enter and when to exit the trade. It is also very essential to set profit target before taking any trade. It has been observed that traders have tendencies of either not booking profit at the time as per the plan or re-enter the stock emotionally after booking the profit. This is called greediness, traders need to avoid this mistake to sustain in the stock market for the long-term and earn money. 

Entry and exit of stock- Entry at the right price while the stock moving upward direction after some correction and exit from the stock after achieving set target successfully is very important. One has to have sound knowledge in the Technical analysis to find out the entry and exit point of the stock or can also take experts guidance for that. One should avoid making any kind of mistake in this two points otherwise traders would be stuck and become long-term investors in the stock market forcefully. Entry and exit of stock based on the stock news should also be avoided unless the trader is 100 percent sure about the fundamental of that stock. Also, Read our article How to make money from the stock market- Combine Fundamental and Technical analysis, Please click here.

Inability to accept loss or putting stop-loss- If you are trading then it is very essential to put stop loss or to cut the position if there is a loss which you can bear. If you don't put stop loss or cut the position in time then a small loss will become the mother of all losses and then you will be stuck with your position. It is advisable that trader should accept the loss if there is any as per the risk-taking capacity. Please understand that nobody can analyze 100% right so booking losses if there is any and moving on to other stock which can give a good return is always a wise decision.  


The above five common mistakes are based on our 25years experienced in the Stock Market. For a successful trader, one must be cautious while trading in the stock market based on stock news, particularly on the above points. The above five points will definitely minimize the losses and would help traders to earn money from the stock market.

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Happy Investing!

Finogyan Team
Do you trade in the stock market on Stock News? Avoid five common mistakes to earn money. Do you trade in the stock market on Stock News? Avoid five common mistakes to earn money. Reviewed by Finogyan on October 18, 2018 Rating: 5

1 comment:

  1. I found your this post while searching for information about blog-related research ... It's a good post .. keep posting and updating information.


3 Steps to Invest in the Share Market for Beginners

3 Steps to Invest in the Share Market for Beginners

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