Mistakes of Novice Traders in Stock Market

       Hello all. Welcome to my 1st blog.

                 I want to share mistakes done as beginner in stock market's field. It's a lucrative field after all as you all know.

                  So the first thing comes to most people's mind about Stock Market is, it's a betting game. I would like to refuse that. It's not like if you have money in your trading account, you lose all your money. It totally depends on you that with how much money you want to trade. One is you can trade with only your money and the other is broker gives you margin money on your account balance on which you can trade.

                  As I have seen, initially; if you call it a beginners luck or what; people make some money😃. And then they become greedy and decides to trade with margins. Brokers generally gives 5 to 10 times margin over your account balance. So you can make 5 or 10 times more money with your Limited balance. This is the mistake most of traders initially do.

                  What they don't think about is; you can lose 5 or 10 times more money also! Generally people realize this after 6-12 months when they have net loss in their account after couple of quarters.

                    So in 2nd year of their tenure in this market, they think they now know everything in this market and should increase their limit and now they will be able to make more money. This is also mistake because if you can't make money with small amount, how would you able to make money with big amount! This is the time when 4 out of 5 days of stock market, you would make profit but very small and on 5th day you would make a big loss, which eventually might result in small profit or small loss at the end of the week. So it's all emotional roller coaster ride and Adrenaline Rush for you.

                       By this time some people leave this market, calling it gamble, and some starts to take it seriously and starts reading some books on stock market. 

                       Now they try new methods described in books, but again makes mistake. They don't have patience to test any technique for at least 15 to 20 days. They would try one technique & if it gives profit; would try for another day, AND if it gives loss they might not try it for any other day and would pick some other technique.
                     These are the mistakes beginners do always. Just give every technique time. Every method is right, just have patience.
                       Hope you liked this blog. See ya all! In my next blog, we will discuss how one can correct these mistakes.