Newcomers to the stock market often make several mistakes when they start trading. One common error is relying blindly on stock tips, which can be highly misleading. Instead, traders should always conduct their own fundamental and technical analysis before acting on any advice.
Another frequent mistake beginners make is ignoring risk management, which often leads to unnecessary losses. It's essential to set strict stop-loss levels and ensure that no trade involves more risk than one can afford to lose.
Many beginners also fall into the trap of panic buying or selling, driven by emotion rather than strategy. This should be avoided. Traders should stick to their technical analysis and trading plan, rather than reacting impulsively to market movements.
