In today’s digitised era, stock trading has become much more accessible via share market apps. You can use smartphones to purchase and sell stocks without even getting out of bed, observe changes in stock markets, and even invest money in mutual funds (if supported by the app). However, there are risks that come with all this convenience offered by share market app for investing in stocks. So, we’ll take a look at some common mistakes to watch out for when utilising these investment tools to help you make better choices.
Disregarding Security
Any financial app must be handled with security in mind, especially when tied to your bank account and its investments. Many people do not take the time to turn on 2-step verification (2FA) or choose unique, strong passwords, which can expose their accounts to hacking and unauthorised access. Always employ 2FA, use a strong password, and avoid accessing the app on public wireless networks unless the connection is secured and encrypted.
Forgetting Fees and Other Costs
One of the most frequent mistakes made by new traders is ignoring the costs associated with trading apps. While some share market apps advertise themselves as “free” or “zero brokerage”, it’s important to note that this often applies only to specific types of trades (like equity delivery). Other transactions, such as intraday trades, may still carry brokerage fees, transaction costs, and account maintenance charges. Collectively, these charges can reduce your overall profits. So, always review the fee structure of your app and consider these costs when developing your trading strategy.
Failing to Use Research Tools
Some trading apps come with research tools to analyse stocks, monitor market trends, and even get insights from experts. However, a common mistake is not using these features, which may lead to short-sighted investment decisions. Before making a trade, take time to explore the available research and study resources in your app. Keep in mind that the quality of these tools may vary depending on the app, so external research may also be necessary.
Trading on Emotion
The ability to trade stocks so easily on an app can lead to impulsive decisions driven by fear or greed. Whether it’s panic-selling during a market drop or getting into a stock because of a sudden surge, emotional trading can often lead to losses. Always have a well-thought-out trading strategy and stick to it no matter what happens in the market. Patience is key to long-term success.
Failing to Set Alerts
Many trading apps support setting price alerts for stocks that you are interested in. However, a common mistake is not setting these alerts, which results in missed opportunities and bad trading timing. In addition to price alerts, you can also set limit orders or stop-loss orders to execute trades when a stock hits a certain price automatically. This can help you act quickly without needing to monitor the market constantly.
Conclusion
Making use of share market apps is a good way to manage your investments, but only if errors like the ones mentioned above are avoided. By remembering to mind your security, check your fees and research tools, and avoid trading impulsively or without proper alerts, you will find that you can navigate the market more effectively and make much better financial choices.
