Reduce Stock Trading Loss: The stock market is very risky until and unless you understand the complete chemistry of the industry. Some people do very well in the stock market, but some people return with disappointment in their hands.

There can be many reasons behind this, such as lack of correct information or not paying attention to it despite having information. You are not the only person who makes all these mistakes, almost every investor gets stressed by these types of mistakes.

I also made a lot of mistakes at the beginning of my career. But I rectified them in time. And today I am investing in the market in a very good way and am also taking good returns from there.

I am presenting some of my lessons in front of you, which you can also do better by following.

How to Reduce Stock Trading Loss

Sometimes we have to see the price of our stock going down in front of our eyes. Sometimes we buy such stocks due to ignorance which we can’t even imagine.

Sometimes we collect junk even in the pursuit of cheap price, which is totally wrong. Let me now tell you some important facts on the basis of which you can reduce your loss.

1. Learn Booking Loss

I have seen that most of us sell our shares after making 10 or 20% profit. But even then we do not sell our shares even when we have a loss of 20 or 30%.

We just keep hoping that it will grow now. Whereas the reality is on the contrary and we also know these things but still we are deliberately deceived.

If you want to perform well in the stock market, then make sure that you will not tolerate more than a certain percentage loss.

You can also set 10% or even 20% on how much you will sell if the price of the stock you bought falls below that.

2. Do Nothing Without Research.

Sometimes we buy cheap stock scores without much research. Just think that it is only a matter of so much money and without any technical analysis we drown our money.

Psychology says you should listen to your mind more than your heart in the stock market. Because business is run by the mind, not by emotions.

You should use emotions only to promote business.

3. Buy Multiple Shares

I have seen many peoples they put all their money in just single equity. It is very bad practice. Never put your money in one company.

If you have ₹ 100000 to invest then put them in 10 different companies in the number of 10 thousand.

Here your risk will increase in 10 parts and your profit will increase by 5 times. 

When you invest in more than one company, some of them outperform their business and computer very badly.

Here you get so much return that you could not earn even by putting all the money in one place.

That’s why it’s said don’t put all your eggs in one basket. Because if one of your pieces breaks, all the eggs will be ruined, but if you put 10 eggs in ten different baskets, then you have more chances of safety.

Conclusion

• Never overestimate yourself. 
• Never underestimate the market.
• Do research properly before investing in the company.
• Be self disciplined. Not over confident or greedy.