As a beginner to trade, when the trader watches market he would be fascinating about the market. He might dream of being milliner within fraction of few days. But the reality is far away from this. As per data, more than 95% trader make loss in the stock market. So, what is the thing that makes them in loss, what is the thing that makes them out of market?
In this blog, I am trying to mention the reasons what make a amateur trader to lose money. The mistakes are quite common for the stock market traders which lead them to loss the capital. Some of which are given below:
No proper plan leads to loss in the stock market
Not only the stock market but every where planning is important phase whenever we start a new thing or make a new decision. Without planning even the hard work fails. Thus without a proper plan trader make loss in the market.
Many trader do not do the proper home work
If trader don’t do proper hard work, he makes loss in the market. Home work is important thing in the trading stock. A trader should do proper homework before investing their hard earned money. Without proper homework investing in stock market is dangerous.
Not following discipline leads to loss in the stock market
Discipline is important in trading. The homework should be done properly and trader should give proper time to market and proper care should be taken while taking new trade or closing the position. If trader doesn’t follow discipline he makes loss in the market.
Traders do not keep stock loss
Another reason why most of the traders lose their money in the market is that trader does not put stop loss. In greed that market will recover many trader do not put stop loss and they make big loss in the market.
Applying self predictions lead to losses
The traders do biggest mistake that they start to trade on the self predictions. And when the price goes in the adverse direction they make it panic. Either they make huge loss on immediate cancellation, or they make the position to wait for too long.
Thus, it could be concluded that stock market trader should enhance his profit if he finds discipline in trading, no self trading and should follow stop loss. Most important among all is to make discipline in the market, trader make loss in the market if he compromise discipline.