3 Mistakes you must not do while trading online – a guide for novice to expert

Awareness is the first step towards reforming your trading habit. Yes, most people who trade in the stock market remain unaware about the wrong trading habits. Habits which develops over time is not always good in trading. Thus, making self-aware with such wrong habits is the very first step you must take, especially when trading online.

Yes, nowadays online trading in the share market is the best alternative available for many methods. Both investors and traders use the online trading platform so as to grow their wealth. However, his is not always true, mainly because of the fact that with greater power comes in great responsibility. And since you solely have to take a decision before executing a trade without any one’s interference, chances of committing error grows.

So, most of the investors and traders make little money. Only a few have gone ahead to make a big fortune from using online trading for their trading or investment. Thus, it is essential to know that the wealth in the stock market is not accumulated by reckless trading. It invariably takes time, determination and well-planned trading approaches to grow wealth.

Here are 3 basic online trading mistakes that not only a novice but also experts tend to make in their race to grow their earnings from the stock market. The awareness about such basic mistakes might help you maintain the edge while trading or investing online smartly.

1. Entering the stock market online trading without a proper trading strategy

Earnings from a stock market investing accumulates only over a period of time. This too needs along with it proper strategies and plans. Such strategies you need to plan and implement strictly to be eligible to become a smart investor or trader.
Either your knowledge or your equity broker or even an expert financial advisor might help you with such expertise with right kind of investments. However, a word of caution. There is no substitute for self-knowledge in this market. After all, money is yours so you need to be the guardian of your own money.
Always keep in mind that opening a demat account and performing share market online trading is quite easy. However, to make money from such investing or trading you need to plan properly your trading and investing strategies.

2. Trading online in more than one market without any stop-loss orders

When you commence your investment journey, you arrive with an investment urge. It is also true that diversification goes very good with investments. However, it is also true that you need to be an expert in the different segment of investments.

Most of the traders enter the share market online trading business mainly to trade in the shares. But once they become aware of the possibilities of investing in multiple products they fascinate to invest in those segments as well without proper knowledge of that segment. Most of the time treating other segments similar to that of shares. However, to become a successful trader in any segment, you first need to understand one segment first, gain proper expertise in it and then only move on to diversify your trading portfolio.

Further, one common mistake every one trading online in the market commits is that they become over smart and think they can out beat the market. So, in overconfidence sometimes or most of the times such traders ignore the stop-loss order. While trading online, you always need to consider the risks and ensure that you utilize stop-loss strategies properly. The stop-loss order action puts a cap on the loss that can you can take safely without any much loss.

3. Spending too much backed by too much enthusiasm

As a new to investing or trading online, it is always a situation that you get too much excited with your trading or investments. Excitements increases after two or more subsequent successful trades. In such excitements, you start assuming the stock market as a den to make money forgetting all plans and strategies. means you get in the proper grip of greed.

These kinds of situations result in finding yourself in trading frequently. Whether there is a good trading opportunity or not, you don’t care about it. You tend to forget your share market online trading plans. Result? You do not follow a trading strategy or turnabout your trading plans frequently. That too without taking any recognition of the strategic investment route you planned for yourself.

Thus, such excitements also always lead to putting more money without a plan in the online stock market trading activities. The stock market trading is not a profession to speculate with your hard earned money. Earn money by only making informed choices. Bypass executing the mistake of losing vision and comprehending taken away with few successful trading deals.

Thus, in order to avoid share market online trading mistakes, it is always good to acquire proper knowledge on the matter or rely on the proper guidance of expert and trusted investment advisors. To learn more about share market online trading services kindly visit www.rmoneyindia.com. Feel free to share your experience and inputs on the mistakes made by you by posting in the comments section. We will help you out of such mistakes.

Naresh Kumar Sharma

naresh.sharma@rmoneyindia.com

Disclaimer : Naresh is the head of Research at Raghunandan Money. When it comes to studying the markets, Naresh is someone loves decoding prices, data, trends & charts. Naresh carries an equal flair for both technical and fundamental analysis and that makes him truly one of the reliable experts in the market. Naresh writes informative articles & blogs for equity, commodity, traders and investors.