1. One of the mistake which one must avoid is the tendency to book profit early and in turn one is missing the trend. Avoid the tendency of trading against the trend as in that scenario one will be booking profit early in huge multibaggers and one will be sadlled with loss making stocks in the portfolio. As a rule ride the trend as far as possible. One can have a simple rule that one will exit when the stock price falls belwo 7day moving average and that way one will be riding the trend high. One can increase the DMA for number of days as per the risk profile of an individual but once identified make sure to stick to it.

2. Another mistake which one has to rectify is the aversion to book loss and as a result one is saddled with huge loss. One can have a thumb rule that if a stock falls below 50 DMA one will book the loss and exit from the stock.

3. In a nutshell one can say that if one is able to ride trend and is able to book loss and even if succes to loss ratio is 40%-60% one will be able to make a lot of money from the stock market.