Standard Bank’s online share trading platform is a powerful gateway for beginners looking to enter the world of investing. It offers access to local and global markets, intuitive tools, and affordable trading fees. But while the opportunities are exciting, many new traders unknowingly make mistakes that can cost time, money, and confidence.
If you’re just starting with Standard Bank online share trading, here’s a practical guide to the most common missteps — and how to avoid them.
1. Not Understanding How the Platform Works
For many beginners, the excitement of trading overshadows the need to learn the platform first.
Why it matters:
Jumping straight into trades without understanding the dashboard, order types (market vs limit), fees, settlement periods, and reporting tools often leads to confusion and mistakes.
What to do instead:
- Spend time exploring Standard Bank’s trading portal.
- Try placing a demo trade or use a small first trade to get comfortable.
- Watch tutorial videos or attend Standard Bank’s webinars for beginners.
💡 Pro tip: Always review how buy and sell orders work before doing your first trade.
2. Ignoring a Clear Trading Plan
Many beginners start trading without a written strategy — no entry rules, no profit targets, no risk limits.
Why it’s a mistake:
Without a plan, emotions like fear and greed take over decision-making. This often leads to buying high and selling low — the worst possible outcome for long-term growth.
Solution:
Create a simple trading plan that includes:
- Your investment goals
- Risk tolerance
- Target entry and exit points
- Maximum loss per trade
Example:
“I will buy shares in Company X only if the price dips by 5% below its recent high and sell if it drops 8% from entry.”
3. Overtrading — Too Many Trades, Too Soon
Beginners often feel that to make profits quickly, they have to trade frequently.
Why it hurts your portfolio:
- Trading fees add up.
- More trades mean more mistakes.
- Emotional decision-making increases.
What to do instead:
- Focus on quality over quantity.
- Trade only when the setup aligns with your plan.
- Allow positions time to perform instead of reacting to every market move.
4. Failing to Use Risk Management Tools
Standard Bank’s platform offers ways to manage risk — like stop-loss orders — but many new traders skip them.
The danger:
Markets can swing wildly. Without risk limits, you can lose more than you planned.
Smart risk management includes:
✔ Stop-loss orders
✔ Position sizing rules
✔ Diversification across sectors
📌 Example: Placing a stop-loss 5% below your entry price helps cap losses if a stock drops suddenly.
5. Trading Based on Tips and Rumors
“One of my friends said this stock will go up next week!”
If this sounds familiar, you’re not alone.
Why this is risky:
Social media, group chats, and hearsay are often unreliable sources. Acting on unverified tips can lead to poor decisions.
Better approach:
Use fundamental and technical research instead of noise.
- Check company financials
- Understand market trends
- Use data rather than gossip
6. Not Researching Companies Properly
Beginners sometimes buy stocks just because they’ve “heard of the brand.”
What many miss:
A company’s popularity doesn’t guarantee strong financial performance.
Pre-trade checklist:
- Earnings history
- Revenue growth
- Industry position
- Debt levels
Take time to analyze reports and not just the share price chart.
7. Emotional Trading — Letting Fear and Greed Control You
Emotions are one of the biggest hidden enemies of traders.
Emotional mistakes include:
✔ Buying because of FOMO (Fear Of Missing Out)
✔ Holding losers hoping they’ll bounce back
✔ Selling winners too early
Best mindset:
Stay disciplined and stick to your trading rules.
🧠 Meditation and journaling can help calm emotional reactions during volatility.
8. Focusing Only on Short-Term Gains
Day trading and quick profits are exciting, but they also carry high risk for beginners.
Why long-term thinking is beneficial:
- Less pressure to time the market perfectly
- Lower transaction costs
- More time for investments to appreciate
Consider a blended approach:
✔ Long-term core holdings
✔ Small portion for short-term trades
9. Not Understanding Trading Costs
Every trade you make on Standard Bank has associated fees — brokerage, exchange levies, taxes, etc.
Mistake:
Ignoring these costs, especially when trading often.
Impact:
Even profitable trades can suffer when fees eat into returns.
What to do:
- Review the fee schedule before trading
- Factor costs into profit targets
- Limit unnecessary trades
10. Ignoring Market Education
Trading is a skill, and like all skills, it requires continuous learning.
Common education gaps:
✔ Not reading financial news
✔ Ignoring macroeconomic trends
✔ Skipping books and courses on stock markets
Smart trading habits include:
- Following credible market analysts
- Reading annually updated investing books
- Watching reputable financial channels
11. Not Tracking Your Trades
Beginners often make trades and forget to monitor performance or review mistakes.
Why tracking matters:
Your best teacher is your own data.
What to track:
📌 Entry & exit price
📌 Fees paid
📌 Reason for trade
📌 Emotional state during trade
Use a simple spreadsheet or a trading journal app.
12. Setting Unrealistic Expectations
One of the biggest mistakes is expecting overnight success.
Reality check:
- Markets reward patience
- Losses are part of the process
- Consistency beats luck
Instead of expecting miracles, focus on steady improvement.
Conclusion — Start Smart and Stay Consistent
Standard Bank’s online share trading platform gives beginners a strong foundation for investing success. But without proper knowledge, discipline, and risk control, rookie mistakes can quickly erode confidence and profits.
If you want long-term success:
✔ Learn the platform first
✔ Create and follow a trading plan
✔ Manage risks with stop losses & position sizing
✔ Research before you trade
✔ Track and learn from every trade
Trading isn’t about luck — it’s about smart decisions made consistently.
Quick Checklist: Avoid These Beginner Trading Mistakes
🚫 No plan
🚫 Emotional decisions
🚫 Overtrading
🚫 Ignoring fees
🚫 Blindly following tips
🚫 Skipping research
🚫 Ignoring risk tools