HighStrike: 5 Most Common Mistakes to Avoid When You’re New to Trading

For many investors, trading offers a world of opportunities. Whether it's extra income or complete financial freedom, investing in the trading world provides a chance to earn with a degree of flexibility that can be managed independently. However, while very enticing, it can often become a minefield riddled with challenges for new investors. Yet, with a bit of support and advice, even new traders can succeed and turn a handsome profit. Fintech educational platform HighStrike helps educate both new and existing traders on the best trading practices and strategies.

HighStrike was developed with the intent to consolidate all aspects of trading, including investing, discussion, education, charting, and analysis, under one unified platform. "There is a lot that goes into investing, and by condensing it into an app, we are giving people all the information they need right in the palm of their hands," states Founder and CEO Ben Z. Here, the team behind the groundbreaking platform shares the five most common mistakes to avoid when you are new to trading.

1. Going in unprepared

"Always have a plan, and that includes an exit strategy as well," explains Ben Z. "Know how much and where you want to invest and research your positions enough to know when to get out. Do not go in unprepared."

2. Avoiding diversity

Course instructor Alex explains that diversity is key to making money. "You don't want to keep yourself limited to just one stock or even one particular type of stock," he explains. "Diversifying ensures that when one industry is down, you are making money elsewhere."

3. Hanging on too long

"Know when to cut your losses and sell," says course instructor Clayton. "Sometimes, traders stay in a position too long because they refuse to take any type of loss, and that tends to increase your losses instead of preventing them."

4. Playing it too safe

"On the flip side, playing it too safe is never a good strategy," explains Ben Z. "If you want to make money, you have to be willing to tolerate a certain level of risk. That is where the biggest rewards lie."

5. Getting emotional

"Furthermore, always keep your emotions in check. It's hard to think clearly when our emotions get the best of us," states fellow instruction Ben C. "Try not to get angry when things don't go as planned. Instead, just fall back to your plan."

With the right advice and guidance in place, trading can be the avenue to take you towards building passive income so long as you are willing to stay up-to-date on the latest trends and analysis. "There is nothing wrong with being new to the game," says Ben Z. "You just have to be open to learning along the way."