Article The Worst Mistakes Beginner Traders Make

T2W Bot

Staff member
Dec 19, 2004
Traders generally buy and sell securities more frequently and hold positions for much shorter periods than investors. Such frequent trading and shorter holding periods can result in mistakes that can wipe out a new trader’s investing capital quickly. Here are the 10 worst mistakes made by beginner traders:
Letting losses mount One of the defining characteristics of successful traders is their ability to take a small loss quickly if a trade is not working out and move on to the next trade idea. Unsuccessful traders, on the other hand, get paralyzed if a trade goes against them. Rather than taking quick action to cap a loss, they may to hold on to a losing position in the hope that the trade will eventually work out. In addition to tying up trading capital for an inordinate period of time in a losing trade, such inaction may result in mounting losses and severe depletion of capital.
Failure to implement stop-loss orders Stop-loss orders are crucial for trading success...
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Oct 25, 2014
Some good points. Ultimately it comes down to traders not following their plan.

A trader should have a trade plan that if followed produces positive results. Most traders have good plans but cannot follow them due to ill discipline and not be able to control their emotions.
Apr 3, 2017
good article but according to google search ,there are over 50 mistakes traders can make
Aug 16, 2010
Very wise!

I totally agree with this post and all the points. Do your homework and make sure you stick to your strategy!