Difference between experience and new traders

Experienced traders will trade according to a concise plan. They know their exact entry and exit points, the amount of capital invested in the transaction, and the maximum loss they are willing to bear. Many new traders are trading on the basis of hope that the stock price will rise as soon as they enter. Anyone who has ever traded knows that this rarely happens. However, this fact does not deter beginners. If the transaction starts to be bad for them, they will improve their emotions because they will find reasons to believe that the stock price will rise.

That’s why you should avoid leverage or margin if you are a beginner. Beginners usually don’t have a trading plan before they start trading. Even if they have a plan, they may be more likely to deviate from the established plan than experienced businessmen. Beginner traders can completely reverse this process all of a sudden. Avoid short selling, put buying, etc. that can erode your whole capital in a single trader. It is always better to trade with cash in hand.

Trading too big or too small

Whether your trading account is too big or too small, these two situations are far from optimal and can lead to emotional trading decisions and therefore have a negative impact on stocks trading results. This is a big problem. This error may have caused most of the trader’s lost funds. This is because it is a common and typical human failure. We do not want to admit that we were wrong. In many situations in life, this is even a good thing. Many people refuse to admit their mistakes and do well.

If a particular share has performed well in the last three or four years, you should definitely know one thing: you need to invest in that particular share three or four years ago. Now, however, the specific cycle leading to this exceptional performance may be coming to an end. You shouldn’t be fooled by buying at a high point and selling at a low point unless you want to lose a lot of money.

Math is very tedious and intricate, but whether you like it or not, as a trader you need to understand the basic mathematical concepts. After all, trading is nothing more than messing with odds, correcting odds, and trying to build them effort for you. The best way of short term trading is to buy a stock with high volume and a good prospect. Then sell it with a profit. You can check more stock information such as ipos at before investing.