Trading against the trend.
Without knowing the market trend and not able to realize the change in the trend, miss to strategically time the right market entry or exit and often end up in trading against the market trend.
Holding the losing position too long.
Afraid to accept the losses in the process of trading, not able to make an exit at right time, hold the losing position far too long without minimizing the losses.
Early exit in a profitable trade.
In fear of losing the small profit earned during a trade, miss out the big upward trend in the stock without knowing to hold a winning position to maximize the gains.
Fail to leverage the capital.
In the process of making quick money, allocating major portion of the capital to one single position and thus exposing the account to excessive risk without any balance for diversification.
Over trade.
The most common mistake committed by a trader is to trade above his actual account capital without controlling the costs in trading.
