The Three Most Common Mistakes Made By New Stock Traders You Should Avoid

Retail investing can be a fun hobby to do with a portion of your income or a great way to expand your retirement portfolio. The stock market does have some inherent risks, but you can make money if you do your research and have a strategy that works for you. Before you sign up for any stock trading services, learn to avoid these common mistakes made by new traders.

Not Selling a Falling Stock

A number of investors using stock trading services make the mistake of not cutting their losses on a stock that isn’t performing well, thinking they made the right decision and it will increase in value again. Don’t be afraid to set a stop/loss limit trade to make sure you get rid of any stock that decreases by a predetermined percentage. Knowing when to sell is just as important as knowing when to buy.

Putting All Their Eggs In One Basket

Avoid going all-in on one stock. The prospect of the overall gains can be tempting, but it could mean a catastrophic loss if your due diligence is incorrect and the stock fails miserably. Several traders have lost everything going all-in on a stock that fails.


Don’t get too emotionally attached to a stock. This is one of the hardest prospects in trading for a lot of people. Too many people have lost a lot of money sticking with a stock that they have built an emotional attachment to. Try to look at stocks as tools to grow your portfolio, not friends and family members.

Be the first to like.

Be Sociable, Share!

    Leave a Reply

    Your email address will not be published. Required fields are marked *