Beginners in share trading often make several common mistakes that can lead to losses. One major error is trading without proper research or understanding of the market. Many new traders rely on tips, social media hype, or emotions rather than solid analysis. This can lead to buying overpriced stocks or panic selling during market dips.

Another common mistake is a lack of a trading plan. Without defined entry and exit strategies, traders may act impulsively, often holding losing trades too long or exiting winning trades too early. Overtrading is also frequent among beginners, as they try to profit from every market movement, leading to higher transaction costs and emotional burnout.

Ignoring risk management is a critical flaw. Many traders risk large portions of their capital on a single trade without using stop-loss orders, increasing the chance of significant loss. Additionally, beginners often misunderstand the role of leverage, using it excessively without realising the amplified risk.

Focusing only on short-term gains and expecting quick profits can also result in frustration and poor decisions. Patience, discipline, and continuous learning are essential for long-term success in share trading. Avoiding these mistakes helps new traders build a more stable foundation and improves their chances of becoming consistently profitable.