How to Avoid Trading Mistakes 

Do's

• Create your own trading strategy. Keep fine-tuning. Draw from other sources but develop your own strategy.

• Get into trading if you think that it is going to be "easy". It's not.

• Trade wisely

• Understand that there is no guarantee of returns on stock markets or returns on your investment by any broking/Advisor company.

• Get into a regular routine.

• Try to have a trading mentor.

• Ensure that you do your own research before you buy any stock or take any position

• Have more than one account just in case your primary account goes down for some reason.

• Remember that there are no guaranteed returns in the stock market

• Insist on a Contract Note for every trade

• Provide complete and correct email address and mobile number while opening trading / demat account

• Constantly scrutinize your trades and see if there is room for improvement

• Make yourselves aware of details of all charges and penalties

• Register your mobile with the stock exchanges also

Don't

• Get too down on yourself about losses, and don't get too high about your gains. No matter how good you are, you WILL have losing days and losing months.

• Fall prey to promises of guaranteed returns given by anyone

• Get misled by persons on the ground of higher returns, fixed returns and / or monthly returns just to procure a trading account from you

• Don't: try to trade at work. It will affect your performance at your job and your trading performance.

• Leave the custody of your demat transaction slip book in the hands of any person including your broker

• Have a secondary Internet connection, just in case.

• Execute any documents without fully understanding its terms and conditions.

• Get carried away by any advertisement issued on financial commitment, returns

• Figure out a nearby cafe that you could trade at, just in case your power goes out.

• Blindly imitate investment decisions of others who may have profited from their investment decisions or invest in good faith even from people whom you know

• Get misled by guarantees of repayment of your investments either through monthly pay out or through post-dated cheques or other commitment

• Get swayed by promises of high returns

• Allow any person to take investment decisions on your behalf

• Give blank cheque for whatever reason

• Adopt trading / investment strategies which is not commensurate with your risk-bearing capacity

• Assume that the investment in cash and derivatives market is similar to investment in mutual fund or other investment avenues

• Assume that if trading is done with a known intermediary it will be safe Carry and therefore always carry out the due diligence before registering as a client, and there is no guarantee that any investment decision will result in profit.