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Trading in the stock market can be a fun experience at times. It has its ups and downs and over the long term it can be a profitable adventure. So, what are some of the common mistakes that newbie’s make?

The first common mistake is relying too much on the news and other events. Spending a lot of time watching the news will not really help you out that much. In fact in many cases it will actually harm your results because you will panic and make foolish mistakes with your money based on what somebody said about some rumor about china and it’s economy.

Most of the time the news will make you worry about your positions somehow. Worrying about your positions and trying to second guess yourself will now have a very good impact on your investing. In fact more often than not it will have a negative affect on your investing over time and cause you to make foolish mistakes that you would not otherwise make.

One other mistake that people tend to make is to second guess themselves. They may enter into a position for one reason but get out for a completely different reason and not follow their original game plan. This is not always a bad thing. If you got into a stock because it was a hot stock tip and you really had no reason to get into it in the first place, (which you should never do), then of course second guessing that decision is important.

But if you had a plan that you actually believe in and are just second guessing your original plan because of something you have heard or some recent market event it is normally a better idea to simply keep to your original game plan and not do anything until your original game plan tells you to.

The last major mistake that people make is not limiting their losses. Having some plan on limiting your losses whether it be through diversification or stop losses and money management every successful market participant limits their losses.

If you work hard at it there is no limit to what you can do with the stock market. It can be a very powerful tool for creating wealth.

For more stock market tips visit Shaun’s site on the stock market basics Get a totally unique version of this article from our article submission service