Thread by @AnshumanCharts

Thread of Some mistakes retail traders/investors do

Would appreciate Retweet ,like/share as it helps many new people in market and encourage us to work more for our followers.
#trading #investing

👉 Cutting winners too soon
This is a very common mistake. New traders are too quick to take a small profit when a position starts to go their way and miss the really big move. Be patient with winning trades.

👉Perhaps, it's human nature to take small gains. However, to really make a lot of money trading, you should try to be very profitable on a few trades.

Trade less , trade big

👉Letting losers run
This is the second common mistake. New traders fall in love with losers and never get out. Be impatient with losing trades! The key on losing trades is to set hard stop losses and move on.

👉Novice traders look for excuses on why the market is wrong and hold onto these fleabags. Remember the market is always right! You will hear excuses like "The stock is down so much, it can't go low"

👉Perhaps, inexperienced traders hesitation to cut losers stems from the fact that it is admitting defeat. Get over it! Sometimes the best trade is to get out early to only lose 5-10 percent, when holding too long costs you 50 percent.

👉Acting on emotions , mostly fear and greed.
It’s business. Your investments are business, and as much as you would like to act on your gut feelings and emotions, it’s important to create investment goals, strive to reach them, and most importantly, know when to get out.

👉Investment decisions should be made based on market facts and information. Being fearful to act or being too greedy will end up hurting the bottom line of your returns.

👉Overconfidence; underestimating risk
Every stock transaction has some risk associated with it. Always remember that you are putting up capital so that businesses can put forth their best efforts to turn a profit. If things don’t turn out as planned,

👉they won’t be seeing a positive return – and neither will you. This is why it is so important to remain objective and not be overconfident in any venture.

👉Trying to time the market
it is impossible to time the market. Concentrate ur efforts on making sound investment decisions and ensuring your portfolio is diversified, rather than timing the market.

👉The market will take care of itself, so you should watch out for yourself by keeping track of your portfolio.

👉Sometimes holding on to a stock is the best action. Remember to trade only at the opportune moment, not before or after. Stick to ur targets and exit strategies, but don’t go looking for other reasons to trade. Overconfidence usually leads to trading more than necessary.

👉Trading on news/events; misinterpreting information
When listening to news or announcements, remember the bias mistake, and pay attention to how the information is being delivered. Remaining critical of the news is important.

👉Ask urself, “Is this news really credible?” and “Will this news really affect a stock’s true value?” Remember that other people may act on the latest sound bite, but that doesn’t mean u have to. Only tangible, quantitative info will really have an effect on the value of a stock

👉Novice investors make errors in judging the probability of a stock. Take extra care when making your estimates, and if an error is made, go back and find out where the mistake occurred. Learning from your previous miscalculations will enable you to get it right the next time.