What’s the biggest mistake that stock market investors make? How to Avoid Stock Market Mistakes While Investing?

That is the Question. On the stock market, the Biggest mistake or smallest mistake both effect is high, so mistake size does not matter.

Now I will discuss every major & minor point that you do repeatedly.

1. Wrong Stop Loss Setup –

Without Stop loss trade means naked trade, you can lose money any time. The market never stable, always fluctuate. If you trade on any stock & any reason this stock

Break support level. Then only one-stop loss rescues your money from big losses.

2. T.V, SMS Call, or Intraday Tips UseAt least every old trader or investor knows TV Stock market channel’s call is based on the number. They already lost huge money to trade on tv calls. Always their 60-70 % calls are performed opposite. So that is not any meaning.

To follow them, the best is to do your own analysis then trade.

3. Money Management

On the stock market, Money management helps to stable your business. You know profit & loss both are a major part of the stock market, always

Trader loss parameter increase. Due to Huge qty stock selection, wrong stock selection, etc., lots to factor are work. In that case money management.

Provide a stable business. It helps to decrease the loss parameter.

4. Stock Selection

More than 9000++ companies listed on BSE & NSE. But the Fact is that only 20-30% of companies are genuine for investing.

You don’t know lots of companies always try o manipulate your mind. Daily 5-10% incensement, impossible profit. But all of this mind track, so traders lose their money due to wrong stock selection.

5. Market News Reflection:-

Lots of traders trade on the news-based stock. They wait for stock news like results; board meetings etc. but you don’t any sometimes good results of the stock impact.

Work positively. So I if you track the proper impact of these result, then ok, otherwise you suffer big losses.

6. Incomplete Analysis

Incomplete Analysis is very dangerous for the stock market. at least learn & basic technical analysis on cash market & proper implement & practice both need. But unfortunately, a new trader wants huge money in a small time. They trade on F&O Stock & lose whole investment 1-2 trade.

7. Risk Ratio

New readers don’t know what is Risk Ratio, how it works. To simplify I am using the profit & loss ratio, before trade you have to calculate selected stock’s buy price

Sell price, stop-loss price. Sell price means profit & stop-loss price means Loss. So remember before trade check your Risk Ratio calculation, always profit & loss ratio will be 2:1 or 3:1

The profit ratio always will be high from loss.

8. Circuit Trading

What is Circuit Trading, how it works? It’s very risky. So stay away from Circuit Trading. if you details want to know Circuit Trading, then read our article

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09. Hedging on Option Trading

Hedging is an important part of Future & Option trading. Without Hedging, Future & Option trading is totally out of mind thinking. So the new trader is aware.

10. Advisory Service

Some new Analysist makes Advisory Service like a scam. So hire a genuine Advisory Service Provider Company or do your own analysis.

11. Continue Practice

The practice is the mul mantra of the Stock market. If you test your knowledge on the live market. Then you can’t trade free mildly, loss’s fear creates tension in your mind.

13. Ignore Multiple Trades:

If you already earned on 1st trade, then why you do the second trade. No stock market Multiple Trade means a day of the end Earning is ZERO Brokerage. I hope traders are understood what I want to say.

After all, As soon as possible remove all of these mistakes on your trading system. Otherwise, get ready to out from the stock market.

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• Intraday & Positional Calls.
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• Best Way to Learn Stock Market in India
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Last Word

I hope you like my article “How To Avoid Stock Market Mistakes While Investing” your knowledge has increased a lot. If I have made a mistake in this article or if you have any questions, feel free to leave a comment in the comments box and I will try to answer your question as soon as possible.