Don’t Do This If You’re New to Stocks (Big Mistakes Beginners Make)
When I first started trading stocks, I made almost every mistake you can think of. I blew up small accounts, chased random alerts, and entered trades with zero plan. I wish someone had pulled me aside and said, “Don’t do this. You’re setting yourself up to fail.” That’s exactly what I’m going to do for you here.
In this post, I’ll share the biggest mistakes I made when I started — and the exact changes that helped me turn things around. If you’re just getting into trading and want to avoid unnecessary losses, this is the post I wish I had read. And if you want the complete system I now follow to stay consistent and profitable, you can check out my ebook right here.
Table of Contents
Chasing Alerts Without Understanding the Setup
This was one of my biggest early mistakes. I followed random trading groups, jumped into Discord calls, and bought stocks I knew nothing about. I didn’t understand the why behind the move — I just wanted quick gains.
But here’s the truth: if you don’t know why a stock is moving, you won’t know when to get out. That’s how you end up holding the bag.
Now, I build my own watchlist every day. I know exactly why I’m watching each stock, and I have clear criteria for entries and exits. I explain this process in my ebook — it changed everything for me.
Using Too Many Indicators
In the beginning, I had every technical indicator you can imagine on my chart. RSI, MACD, VWAP, Bollinger Bands — all layered together. But all they did was slow me down and make me second-guess every decision.
Eventually, I learned to rely on price action, volume, and key levels. When I cleaned up my charts, I finally started seeing what really mattered. If you’re still struggling with this, I highly recommend simplifying your setup. You’ll think clearer and react faster.
Trading Without a Plan
I used to enter trades just because something “looked good.” No stop loss. No target. No real thought. That led to panic exits, big losses, and sleepless nights.
Now, I never enter a trade without knowing exactly where I’ll get out — win or lose. This kind of structure is what helped me become consistent. It’s not about being right all the time — it’s about having a plan you can trust.
Thinking You Have to Trade Every Day
This one was hard for me to learn. I thought I had to be in the market daily or I was missing out. But forcing trades on slow or choppy days is a fast way to lose money.
Some of my best days came from waiting for perfect setups, not chasing action. If the setups aren’t there, I don’t trade — simple. That kind of patience took time to develop, but it’s a core part of the routine I share in my ebook.
Ignoring Risk Management
At first, I didn’t care about risk. I’d go all-in on trades and hope for the best. That worked a few times, but eventually it backfired — badly. I lost big and had no way to recover.
Now, I risk only a small portion of my account per trade. This protects me on bad days and keeps me in the game long-term. If you’re new, remember: protecting your capital is the key to growing it.
Thinking More Trades = More Money
This was a painful lesson. I thought that the more I traded, the more money I’d make. But what actually happened? I racked up commissions, losses, and stress.
Fewer trades, better setups, and more discipline gave me better results. I trade less now, but I win more. You don’t need 10 trades a day — you need 1 or 2 good ones with a solid plan.
Copying Other People’s Strategies Blindly
I wasted a lot of time trying to force someone else’s trading style to work for me. What I finally realized is that you need to build your own process. You can learn from others — but don’t copy trades without understanding them.
That’s why I created my ebook. It’s not hype or theory — it’s how I personally trade, based on real routines that help me pay bills with stocks. It’s simple, focused, and it works for me.
Holding Losers and Selling Winners Too Early
Emotion kills trades. I used to hold onto losing positions hoping they’d bounce back, while selling winning trades way too early out of fear. It took me a while to break that habit.
Now, I stick to my targets. If I hit my goal, I lock in profit. If the trade hits my stop, I cut it and move on. No emotion. Just discipline. That mindset took time — but it changed my results completely.
Thinking Trading is a Way to Get Rich Fast
I thought trading would be an easy shortcut to wealth. It’s not. Trading is a skill — and like any skill, it takes time, practice, and patience. You won’t master it in a week, and you won’t win every trade. But if you stay consistent, you can build something real.
That’s what I did. I focused on building a routine that worked for me, and now I use trading to cover my living expenses each month. If that sounds like something you want, start by learning my process inside Pay Bills With Stocks.
Not Reviewing Your Trades
One mistake I made for too long was not reviewing my trades. I just moved on after a win or loss. That kept me stuck.
Now, I review every trade — what I did right, what I missed, and what I can improve. I even screenshot setups and save them for future reference. This habit made me a sharper trader, and I highly recommend it if you’re serious about improving.
Final Thoughts
Being new to trading is exciting, but it’s also dangerous if you’re not aware of the common traps. I’ve made all of these mistakes myself — and it cost me time, money, and confidence. But once I simplified my process and built a routine I could follow every day, everything changed.
If you want to avoid years of frustration and finally learn how to trade with clarity, confidence, and structure, then start with my ebook here. I created it specifically for traders like you — people who want a real system they can use without relying on luck, hype, or indicators.
Your future in trading doesn’t need to be filled with mistakes. Learn from mine, and you’ll get ahead faster than I ever did.
Another major mistake I made early on was thinking that if a stock was cheap — let’s say under $5 — it was a better opportunity. I didn’t realize that cheap doesn’t mean undervalued. Many of those stocks were cheap for a reason: no volume, no news, no structure. Now I know to look for stocks with strong volume and momentum, not just a low price tag.
I also used to ignore the overall market direction. I’d find a stock that looked strong and enter blindly, not realizing the entire market was pulling back. If you’re trading against the flow, you’re making it harder on yourself. That’s why I check SPY and QQQ pre-market — to make sure I’m aligned with the bigger trend before I even touch a ticker.
Emotions played a huge role in my early losses. If I lost a trade in the morning, I’d immediately try to make it back. That led to revenge trading, and it rarely ended well. One of the most important skills I’ve built is knowing when to walk away. I share my rules for managing emotions inside my ebook, because mastering your mindset is half the battle.
Another thing that hurt my progress was constantly switching strategies. I’d try something new every week because I didn’t trust the process. The truth is, you need to stick with one method long enough to know if it works. Jumping from one setup to the next will only slow you down. That’s why I created a routine that I follow daily — and I teach that exact structure in my ebook.
I also learned that trading without journaling is like driving without a map. You might get lucky sometimes, but you won’t improve consistently. By tracking my trades — including entry, exit, reasoning, and results — I began to spot patterns in my behavior. I noticed which setups worked best for me and which ones I should stop trading altogether.
Another early mistake was listening to too many voices. I’d scroll through social media, watch YouTube videos, and change my bias based on what others said. But in the end, no one else is responsible for your money — only you. That’s why I started building my own watchlist, creating my own trade ideas, and following my own routine — the same one I teach in my ebook.
I’ve also seen beginners hold trades overnight without understanding the risks. After-hours price movements can destroy your position, especially if you’re in volatile stocks. That’s why I personally trade only during regular hours, and I’m out by mid-day. I prefer taking clean intraday setups with less risk and more control.
One powerful lesson I learned was the value of trading less but trading better. When I focused on only 1 or 2 A+ setups a day, my win rate went up. I stopped feeling like I had to “make something happen” and started waiting for the market to come to me. That small shift made a big difference in my account and my confidence.
I also learned the hard way that position sizing matters. Going in too heavy on a trade can wipe you out fast, especially when you’re new. I now base my position size on a fixed risk amount per trade, not just how “good” something looks.
That keeps my losses small and allows me to trade again tomorrow. I explain this in simple steps in my ebook for those who want to apply risk management correctly.
Many beginners try to go full-time too soon. I thought after one good month, I was ready to quit my job. That’s not how it works. You need consistency over time — months of data that show you can manage losses and stay profitable. I now treat trading as a professional skill, and it’s helped me build something reliable and steady.
Another common trap is relying too much on hot tips or “stock picks” from others. When you don’t understand the logic behind a trade, you can’t manage it properly. I stopped caring about what others were buying and started focusing on my own setups, built from my morning routine. That’s how I got consistent — and that’s what I show in Pay Bills With Stocks.