The reason why there are failures in the stock market is a question many people ask themselves. A lapse of strategy, emotional buying and selling, short trading and many such reasons come to the fore. A good share trader should analyze his actions and spot the mistake. He should develop a strategy to overcome the hurdles that are of common occurrence in the stock market.

There are first timers who make common mistakes like the choosing the wrong share and investing in them. They are not very sure of the time to bail out of a losing share and similarly when to profit from a winning share. Their main problem is that their understanding of the market is not enough. They need to know more to trade better. They should learn their trade by observation and monitoring. Once they get an idea they should make their portfolio and outline their strategies.

Dealing with the naiveties one at a time:

• Choosing the right share to buy is difficult for even very experienced trader.  It is no wonder that beginners find themselves in a soup more often initially. The reason being that they tend to believe what their amateur friends and relatives are saying and invest in shares based on emotion rather than discretion and research. It is true that only very experienced traders profit by all their investments. Professional traders have systems to pick the right share. This type of technology and expertise is not available to the nascent beginner.
• Beginners never know the right time to pull out. They end up holding the stock for too long or selling too soon. The end result is same though, loss. It is well to take a broker’s advice or an expert’s advice on the same before developing an eye for the minute details and patterns of share trading. The professionals have systems and software that draws charts , makes patterns and analyzes and monitors them to give results of whether a share would rebound or not. A novice will not have access to such complicated methods and technology, even though it might be futile even if available.
• Timing is an ingredient which plays the most important factor in share trading and its profits. The perfect time to sell your shares when it is on an up ward swing is miscalculated by most people. They tend to hold on for too long till the share falls and begets losses for all the investors. Winning shares are held on hoping for a continuous win but everything that goes up will come down!!
• There are shares that move in tandem with each other, some move antagonistic to each other and still some move opposite to the market direction. There are shares that show no movement of any type for long periods of time, some which move side ways, some ready to be delisted, etc. This is the knowledge beginners have to collect and imbibe so as to combine strategies to profit by trading.