FIVE BIGGEST MISTAKES THAT TRADERS AND INVESTORS MAKE

1. Trading against the major trend - Fighting the momentum of the market. Not knowing the direction of the major trend and how to accurately define a change in trend direction. Not knowing how to strategically time market entry and exit.

2. Holding losing positions too long - Failure to accept losses as part of the trading process. Associating losses with being wrong or losing. Not knowing when to get out of a market that has signaled a change in trend to limit losses.

3.Exiting profitable trades too early - Fear of losing unrealised profits. Trying to outsmart the markets by getting out on a presumed extreme price, then missing the big trends when they occur. Not knowing when to hold a winning position to maximize gains.

4. Trading too big - Trying to make too much, too quickly. Allocating too much capital to one position, exposing the account to excessive risk and reducing the protection from balance and diversification. Not knowing or not managing the risk.

5. Trading too often - Over-trading or "churning" the account. "Day Trading" falls into this category if the total transaction fees (commissions) are too high relative to your account size. Not controlling the costs in trading.

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PRIYANGSHU