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Common mistakes done by new investors February 08 2021Share market investment, Stocks, Share market news

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Investing in any form comes with a bit of risk, especially when you are investing in shares, as shares are subject to volatility in the market.

Although it’s a human tendency to make mistakes, they always teach you lessons. Investors who are beginners in the market often make mistakes while trading due to lack of knowledge and experience.

Below are some most common mistakes done by new investors while trading.

Being greedy

Beginners look up to the market as a profit generation hub, but to generate profit one needs sheer knowledge, patience, courage to take risk and keep a track of the investments. New investors show greediness as soon as they start investing in the market. Being greedy can turn your hard earned money into a mere loss. If you want to exist in the market for long term then you have to leave the greed behind. 

Bearing too much risk.

New investors go for highly risky investments that offers huge amount of profits which in turn makes the investment risky and there are chances of losing money. You should always pick shares with moderate or less risk to stay away from huge losses. There are shares with moderate and low risk factor which offer good returns. So never go for highly risky investments if you aren’t sure about the outcomes.

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Over Trading.

Trading is a complex act and it needs conscious efforts in front of the screen throughout the day. Over trading can lead to physical and mental stress. Apart from that it can cause anxiety and lead to a stressful lifestyle. To avoid such situation one should avoid overtrading at the early stage.

Trade without a plan.

Share market faces unexpected fluctuations and if you don’t have a plan in your head before starting to invest, the market can be a messy place for you. New investors often start off without planning their investment, deploying strategies in their investment plans which can lead to confusion. One should always plan before starting to trade.

Having no patience

Patience is very essential for a successful trading journey. Being patient while investing and trading is the key to a better trading journey and experience. New investors often lose patience at the early stage. Lack of patience can turn a high profit making share into a moderate or low return giving share if you don’t be patient for the share to grow. 

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