slide 1: Stop Doing These Silly Mistakes and Earn
Profit Smartly – Trading Tips
In general there are many things to remember while trading but traders are not able to keep so
many things in mind and as a result they make mistakes. Here are some common mistakes that
every novice trader as well as experienced trader commit while trading.
When you have some goal and you want to achieve it then your first step is to explicitly
map out what your goal is. Whether you are planning to save for your retirement or you
are saving for a house in 5 years you need to map out what your goal is. If you want to
select the investment that fit your goal then you have to know what you are trying to
accomplish. It is really hard to create an investment strategy that will get you somewhere
without a goal in mind.
Earlier you can only get a limited amount of stock data available on newspaper.
However these days it is the opposite. Simply with one click you can get a vast amount
of information about a particular stock. It is recommended to carry out an exhaustive and
effective market research when determining the stock to buy or sell. If you do a dirty
work looking and uncovering essential information about a company then it is really
hard to generate accurate share market tips. You can find a lot of information on the
internet in a matter of seconds. But if you trust the information that is available on
internet then you may get lost easily. As you will have no idea from where to start. This
is the reason why you should know exactly what to look for in order to make the best
decision.
Another common mistakes that usually trader commit is that they do not diversify their
amount. You must take into account that diversification is an effective way to reduce risk.
slide 2: Best example is that the bonds and stocks usually move in opposite directions which is
the reason why including bonds in a portfolio is not to increase returns but to reduce risk.
Traders must find a medium between risks and return.