‘Beginners luck’ is often a phrase that is used with many ch...

‘Beginners luck’ is often a phrase that is used with many chancy events. It does exist, because it is founded on a simple principle of information. Actually, lack of information.
A beginner has very less information when he comes to the market. All he knows is that stocks have to be bought and sold and there is some profits to be made. He buys (hardly any newbie ever short sells) the stock that someone tells him. He buys it when he is told to buy it and he holds it for a while and sees some profits and sells it.

But this is very dangerous. Confirmation bias can set in a cause a large amount of loss as compared to rational thinking and good decisions made based on information that we know.

I had little beginner's luck when I started trading but I feel the biggest lesson learnt is to know your stock.