11 Costly Stock Trading Mistakes New Investors Make

9. Misusing Leverage

Using borrowed money (margin) to trade might sound like a shortcut to big gains—but it’s also a shortcut to big losses. Leverage magnifies everything: profits and mistakes. New investors often dive into margin without understanding the risks. If a trade goes south, you could lose more than you invested—and still owe the broker. Leverage demands precision and discipline most beginners haven’t built yet. Until you fully understand the mechanics and consequences, stick to your own capital. Better to grow slow than go broke fast.