Common Mistakes Traders Should Avoid

Submitted by Stock Market News on 4 May, 2011 - 23:02

A typo can go a long way.

Mistakes will be inevitably made in trading. Unfortunately more often than not it’s at the expense of your money. However, for a beginner this is to be expected. Trading is primarily trial and error until you are able to come up with your own system that lets you profit consistently. Unfortunately, these are not the biggest mistakes you have to watch out for. More often the simple ones have more bearing.

There are instances when you make a mistake before you can even make a trade. Typing the wrong ASX code, putting in the wrong price, buying a stock instead of selling, and basically making a typo in a transaction are all possible. It’s important to double check and look at the preview screen before executing a trade. These can be considered as stupid mistakes, but there are times that you’re stressed, working at something else at the same time, or just plainly need a cup of coffee. Never forget to think before you act.

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