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.

Beginners in share trading often make common mistakes that can lead to significant losses. One frequent error is trading without a clear plan or strategy, leading to impulsive decisions driven by emotions like fear or greed. Many also fail to do proper research, relying instead on tips, rumours, or social media hype. Overtrading, making too many trades in a short period, is another pitfall, as it increases transaction costs and risk exposure. Ignoring risk management, such as not using stop-loss orders, can turn small losses into large ones. Additionally, beginners often lack patience, expecting quick profits and reacting hastily to market fluctuations. Failing to diversify their portfolio is another issue, as it increases vulnerability to sudden price drops in a single stock.