Top trading mistakes

1. Trading without a game plan : many of them enter a trade hoping that share will go up certainly, however not sure how high will it go. One should assume several things before entering a trade. They are as follows.

 Is there any upside or downside left on the stock? You should analyse this according to technical analysis or seeing the sentiment prevailing in the stock.  normally a stock moves 3% up or down in a day.

What is the possible target? What is the Stop loss that you should keep?

2.  Another mistake is not following the game plan. Changing game plan shows emotional instability in trading. If emotions rule you in trade, you should not trade.

3. Taking two many positions which you can not monitor: You can monitor 2 to 3 stocks at a time . So limit your positions to what you can control.

4. Not booking profits: A penny in the pocket is better than a dollar in the bush. So unrealised profit is just a illusion. In trading the maximum probability goes in favour of loosing. So you should be quick in booking profits because it is a rare opportunity.

5. Letting the looses run and close the position expecting it to go in favour of your position. Accept lose and try in next time. You can not win always.

6. The biggest mistake is proving that you are correct. In stocks only market is correct. There are millions of people trading, you are a worm considering the vast network of traders. Accept it and act accordingly.

7. Trade your emotions instead of signals: buy when you are greedy and sell when you are afraid.

Apart from the above mentioned mistakes there are lot of crazy mistakes that every trader must have come across.