Having a strategy in the stock market is very important. You should know when buy a stock, what is selling price and how long you will hold the shares. When choose a strategy follow its principles and don’t change your strategy every day.
Many traders when lose in a stock don’t sell the stock and stay till the stock price return to the price they have bought. This is one of the greatest mistakes that new trades do it because they maybe lose much more money and time with holding a fail position.
When a reasonable profit has already been made, Overcome to Greed and sell the stock for taking the profit.
Many traders especially day traders feel the need to hold positions in the market at all times on every trading day. Often they will break their own rules in order to get all of their capital into the market. Sometimes , it is best to stand aside and avoid holding any position in the markets at all.
Don’t use money that you really can’t afford to lose. Examples of this would be money that is supposed to be used to pay the mortgage, bills or your child’s college tuition. This is causing trading with fear and emotions.
Some people stick to a stock because they believe it is a good stock. They even lose much money, but don’t sell it.
People will often expect to get rich in the market overnight, but they fail to realize that trading is like any profession; you must learn how to do it first.
A stop-loss is a predetermined price point at which a loss is accepted and an investor closes the position.