Beginner Trading Mistakes
A Value-Based Perspective
LESSON
1
BY : CELINE ANGEL
INDEPENDENT FINANCE PROJECT
1. Emotional Trading
LESSON :
COMMON
MISTAKES
Many beginner traders make
decisions based on fear or
excitement.
Sudden price movements or news
headlines often trigger impulsive
actions without proper analysis.
Emotional reactions can cloud
judgment and increase risk.
LESSON :
Not all news requires immediate action.
COMMON MISTAKES
2. Overreacting to News
Company announcements, earnings reports, or market
rumors can cause short-term price fluctuations.
Beginners often assume these movements reflect
long-term value, which is not always true.
LESSON :
Understanding risk is as important as
understanding opportunity.
COMMON MISTAKES
3. Ignoring Risk Awareness
Some beginners focus only on potential gains without
considering possible losses.
This can lead to poor decision-making and unrealistic
expectations.
Patience over
impulsiveness
LESSON :
VALUE-BASED TRADING
What Is Responsible Trading?
RESPONSIBLE TRADING EMPHASIZES:
Long-term thinking
over short-term
excitement
Accountability for
every decision
Trading decisions should be guided by discipline
and ethical awareness, not just profit.
This guide is part of my independent passion project,
Mindful Markets, where I explore how behavioral bias
and emotions influence trading decisions. Through this
project, I learned that ethical decision-making and self-
control are essential for sustainable participation in
financial markets.
Reflection from My Project
Trading is not about beating the
market, but about understanding
risk, discipline, and human behavior.
Closing Thought

Beginner Trading Mistakes A Value-Based Perspective.pdf

  • 1.
    Beginner Trading Mistakes AValue-Based Perspective LESSON 1 BY : CELINE ANGEL INDEPENDENT FINANCE PROJECT
  • 2.
    1. Emotional Trading LESSON: COMMON MISTAKES Many beginner traders make decisions based on fear or excitement. Sudden price movements or news headlines often trigger impulsive actions without proper analysis. Emotional reactions can cloud judgment and increase risk.
  • 3.
    LESSON : Not allnews requires immediate action. COMMON MISTAKES 2. Overreacting to News Company announcements, earnings reports, or market rumors can cause short-term price fluctuations. Beginners often assume these movements reflect long-term value, which is not always true.
  • 4.
    LESSON : Understanding riskis as important as understanding opportunity. COMMON MISTAKES 3. Ignoring Risk Awareness Some beginners focus only on potential gains without considering possible losses. This can lead to poor decision-making and unrealistic expectations.
  • 5.
    Patience over impulsiveness LESSON : VALUE-BASEDTRADING What Is Responsible Trading? RESPONSIBLE TRADING EMPHASIZES: Long-term thinking over short-term excitement Accountability for every decision Trading decisions should be guided by discipline and ethical awareness, not just profit.
  • 6.
    This guide ispart of my independent passion project, Mindful Markets, where I explore how behavioral bias and emotions influence trading decisions. Through this project, I learned that ethical decision-making and self- control are essential for sustainable participation in financial markets. Reflection from My Project
  • 7.
    Trading is notabout beating the market, but about understanding risk, discipline, and human behavior. Closing Thought