• Invest
    Investment Suite
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Currency
    Non Convertible Debentures
    Sovereign Gold Bond
    Exclusive
    NRI Account
    Private Client Group
    Features
    SipIt
    MTF
    Investment Suite
    Exclusive
    Features
  • Platform
    Product Suite
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Features and Tools
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Payoff Analyzer
    Calculators
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    All Calculators
    Product Suite
    Features and Tools
    Calculators
  • Pricing
  • Research
    Research Calls
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Research Reports
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
    Research Calls
    Research Reports
  • Market
    Stocks
    Market Movers
    Large Cap
    Mid Cap
    Small Cap
    Indices
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    All Indian Indices
    Mutual Funds
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    All AMC's
    IPO
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Stocks
    Indices
    Mutual Funds
    IPO
  • Learn
    Resource
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Quarterly Results
    Investing Guide
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Commodities
    Currency
    Futures & Options
    Derivatives
    Margin Trading
    Events
    Budget 2024
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2024
    Resource
    Investing Guide
    Events
  • Partner
    Business Associates
    Fund Expert
    Kotak Connect Plus
    Startup connect
  • Support
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement
​

5 Common Beginner Trading Mistakes To Avoid

  •  3 min
  • 0•
  • 30 Jan 2023
5-common-mistakes-to-avoid-by-beginner-while-trading

Trading is a lucrative career option, which is why many people are venturing into it these days. Thankfully, some excellent financial advisors are available who hold the hands of amateur traders and guide them on the correct financial path. Still, some mistakes are made, and some very common beginner trading errors are regularly seen. What are these mistakes, and why should you avoid them as a beginner? Let’s find out.

Mistakes To Avoid As A Beginner In Trading

1. Not having an investment objective

You should not simply trade because it is a trendy thing to do - you should trade because you have an investment goal in mind. When you set a target for yourself, you know exactly which path to follow and what type of stocks to buy and sell.

Many people make the mistake of trading without any plan or direction, and that leads to them feeling lost and confused along the way.

2. Chasing profits

When you start trading, you need to be patient and understand the conditions that govern the financial markets. If you simply start trading in order to make a profit, you will end up making a mistake.

There are no shortcuts to success and like any other form of income, earning through trading also requires time and effort. Be ready to invest your time and effort and wait for the profits to flow. Do not chase profits as that will attract more losses towards you.

3. Trading based on recommendations

People around you may be great traders, but you should not take your investment decision solely based on their decisions. Everyone has different financial requirements, and their financial paths are different.

What works for others may not work for you. So, do not make the mistake of trading based only on someone’s recommendation. Rather, do the research yourself, understand your investment needs, and then find the equities that match those requirements.

4. Blindly aping someone’s trading patterns

Some very influential traders serve as major inspirations to anyone looking to start out in the markets. Many people think that buying and selling the same stocks that these successful traders go for, will fetch them the same level of success. This is a big mistake.

The big investors have huge capital, a higher risk appetite, and their investment goals are totally different. You cannot imitate them, as doing so will prove to be a major error.

5. Getting overconfident after a successful trade

Trading has its ups and downs. This is why you should take it slow. Do not get too carried away after one single profit.

Wait for the profits to become a trend, as only then will you be able to understand how the markets work and make proper investments in the future.

Now that you know more about the common trading errors, avoid them as a beginner. Remember that slow and steady wins the race. Be systematic, patient, and understand the market conditions. Set financial goals for yourself, stick to your plan, and you will soon become a successful trader.

Did you enjoy this article?

0 people liked this article.

What could we have done to make this article better?

Enjoy Zero brokerage on ALL Intraday Trades
+91 -

personImage
Enjoy Zero brokerage on ALL Intraday Trades
+91 -