1) Do not buy immediately after the market opens at 11 am. Stock prices tend to be highly volatile during market open and market close. Wait at least 30 minutes after the market opens. Ask me. I have reduced my profits numerous times just because I became impatient and bought in a hurry.
2) Do not try to save pennies while risking dollars. Some investors tend to keep their buy and sell orders at extremely low or high prices than the current market price. While you will be lucky if the price comes at your level, many times, you might miss the stock and never get to buy or sell. Ideally, we want to buy or sell a few rupees below or above the LTP. In the bigger picture, the small price deviation does not matter.
3) A volume spike is seen both at the beginning of an uptrend and also at its end. Don’t buy a stock just because its volume has spiked. You might be entering during the final bullish gasp before the start of a bearish trend. I have lost quite some money doing this mistake.
4) After you buy or sell, get the fuck out of the NEPSE tms. It is so tempting to keep watching the price fall or rise. This leads to a chain of irrational decisions. After you implement your strategy, close that screen down. Go somewhere else. Do something else.
5) Learn a better exit strategy. It is very painful to exit early and see your stock keep rising. It is worse to be paralyzed and not be able to sell, only to see your profit turn to a loss. Landing a plane is as important as flying it. Learn to land as efficiently as you learn to fly.
6) Never violate your trading strategy. Ouch. It hurts if you do. It hurts your wellbeing and it hurts your wallet.
7) Do not ignore the overall trend. When the primary tide is going one way, do not implement your strategy in the opposite way. 80% of the stocks gain in an uptrend and 80% fall in a downtrend. The long-term trend of the overall stock exchange should always be in your favor.
8) Avoid stock market discussions at all costs. Read and learn everything you can from the books and videos. Do not argue with another investor. Stock market discussions tend to be toxic, non-beneficial, and egoistic. It hurts the mental makeup. Emotional trading fucks up with your profitability.