You’d be amazed at the amount of people who charge haphazardly into stock trading. Many of them end up totally dazed within a short period of time by how hard it is to make a consistent profit. To be honest, even some of the most experienced traders make mistakes down the line. During your first steps into trading, it’s important to avoid certain rookie’s mistakes.
When you step into the market, make sure you come prepared. Without all the right knowledge and experience, the markets will chew you up and spit you out in no time. I’d love to be able to recommend a trading bible; something which will teach you everything you need to know. This is something I simply can’t do. No matter what the cover says, there’s no single text like this. Get your hands on a few recommended books, and read all of them for a more versatile bank of knowledge. If possible, talk to an experienced trader. There aren’t that many out there who will share their secrets just like that, but you might get lucky. In between the books and meetings, look for online resources like these Apple stock predictions. My point here is to never underestimate the requirements of successful trading. Prepare, prepare and then prepare some more.
Once you’ve done the groundwork and start making your trades, get organised. When you’re trading, everything’s going up or down constantly. Faceless strangers are either dropping their money into your lap or snatching it away. The sheer chaos of it all can get you extremely stressed in an extremely short amount of time. To soothe this, start a trading diary and keep it organised. Every time you make a trade, print the chart and give it a reference number. Then, write down in your diary why you made the trade, whether it was fundamental, technical or a tip. Remember to take down your entry and exit, too. You’re going to have little failures here and there, but having the diary to look back on will help you understand it all better.
Finally, don’t anticipate instant profits. In many cases, this is the make or break pitfall which must be avoided. Every single trade has the potential to backfire on you. Never, ever forget that. I’ve heard of emerging traders doing calculations to see how much money they’re definitely going to make. Then they see how they’ll spend money they don’t have! Never take anything as a given. Let the market tell you how much you’ll make, and always have a strict budget for how much money you’re prepared to lose. Success is all based on your understanding of the markets, and right now you don’t have much of that! In your early days, you should be fearing a loss rather than anticipating a gain.
So there you have the three biggest trading mistakes you should be avoiding. My final tip; don’t be scared off! Everyone takes some hits when they first start. Approach your trading carefully and shrewdly; it will all get easier!