“How to Avoid Common Stock Market Mistakes and Stay on Track with Your Trading Plan”

Prepared by: Hisham Mukhaneh

Traders make a lot of mistakes in the stock market, and they get bumps every now and then. While some of these mistakes are inevitable, it is important for you as an investor not to get used to their existence, and to profit from successful and unsuccessful positions as well.

Trading plans should be your guide as you move through the markets, and the plan should contain a specific strategy, time commitments and the amount of capital you are willing to invest.

After a bad day in the markets, traders may be tempted to cancel their plan. This is wrong, because the trading plan should be the basis for any new position. A bad trading day does not necessarily indicate that this plan failed, it may simply mean that the markets did not move in the expected direction during that particular time period.

So it is necessary to keep a daily record of successful and unsuccessful trades, and the reasons for each. This may help you learn from your mistakes and make more informed decisions in the future.