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Back to Learn
Technical Analysis6 min read

By TheKaasu

7 Common Trading Mistakes (and the Fixes) New Investors Make

Real-world mistakes beginners make in Indian markets and quick, human fixes to avoid burning capital.

1) Oversizing positions

You buy ₹1,00,000 of a single stock on a ₹5,00,000 portfolio. One bad day costs you sleep. Fix: Cap risk per trade at 1–2% of portfolio using position sizing.

2) Averaging down without a thesis

Buying more just because price fell is not a plan. Fix: Average only if fundamentals improved or the original trigger remains valid; pre-define your max allocation.

3) Chasing circuits and pre-open spikes

Upper circuits feel like free money until liquidity vanishes. Fix: Wait for the first 15–30 minutes; let volume and range settle.

4) Ignoring exit criteria

Most new traders enter with hope and exit with panic. Fix: Set an invalidation level and a first target before you click buy; write it in your log.

5) Trading the news without context

Good results, bad price — or vice versa. Fix: Check guidance, margins, and volume reaction; avoid trades in the first 10 minutes post-news.

6) No journal

If you don’t log it, you won’t improve. Fix: Maintain a simple sheet: setup, entry, stop, target, outcome, emotion score.

7) Too many indicators

RSI + MACD + 6 moving averages = decision fog. Fix: Pick one momentum (RSI) and one trend filter (50/200 DMA). Keep charts clean.

Trading is a craft. Small, repeatable edges beat flashy screenshots.


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