#TradingMistakes101 Not researching the markets properly

Some traders will open or close a position on a gut feeling, or because they have heard a tip. While this can sometimes yield results, it is important to back these feelings or tips up with evidence and market research before committing to opening or closing a position.

It is essential that, before you open a position, you understand the market you are entering intimately. Is it an over-the-counter market, or is it on exchange? Is there currently a large degree of volatility in that particular market, or is it more stable? These are some of the things you should research before committing to a position.