In this article, I will be sharing to you the most common mistakes committed by the rookie traders. These mistakes will be made by all the newbies because of the fear of losing money and being ridiculed by the experienced traders.
Many rookie traders will make these mistakes in trading because they are just not aware of the importance of the market movement. The first mistake that they will commit is that they do not watch the market closely enough. It is important for a rookie trader to keep himself updated about the market condition.
Another mistake that the rookie trader will commit is to rely on the news. Most of the news that you hear from the news agencies will be false and misleading. This is because the news agencies will always tell you what is going to happen but there is no way of telling if it will actually happen. This is the reason why the rookie traders tend to rely on their instincts more than the news.
The next mistake that the rookie traders will commit is to rely on the market trends and chart patterns. The market trends are always changing and this is why the novice traders do not know what to do with it. It is important for the newbie traders to look for the market trends and chart patterns and understand the patterns that they are using. This will help them identify the market trend and chart patterns and make their trades accordingly.
The last mistake that rookie traders will commit is that they fail to understand the psychology behind the market movement. Most of the novice traders will just rely on their charts and try to trade the market based on the charts. If the charts go up, they will try to increase the price of their stocks and if the charts go down, they will try to reduce the price of their stocks. It is important for the newbie traders to understand the psychology behind the market movement because this will help them to take decisions based on their analysis.
I hope that I have helped you understand the mistakes that the rookie traders commit in trading the market. This article is meant to be a helpful guide to rookie traders so that they do not commit the same mistakes.
It is important for the newbie traders to always keep an eye on the market condition so that they can determine the trend that will be prevailing in the market in the next few days. If the trend is negative, then it is important for them to take their exit from the market. However, if the trend is positive, they need to take their position because the trend will not go down.
The most important thing that the newbie traders should remember is that trading is a game and they should play the game based on their analysis and experience. If they do not know how to do that, they should not waste their time playing the game.