11 Costly Stock Trading Mistakes New Investors Make

11. Having No Exit Plan

Buying is easy. Selling? That’s where most beginners stumble. Without an exit strategy, new investors hold on too long, hoping for a comeback—or sell too early, fearing a dip. Either way, it’s reactive, not strategic. Before you buy any stock, know your “why,” your price target, and your stop-loss. What will make you exit—profit, risk, or time? Write it down and stick to it. An exit plan removes emotion from the decision and keeps you focused on your goals. In trading, how you leave matters just as much as how you enter.