Avoiding Common Day Trading Mistakes

Trading is risky and challenging esp. for day traders. It’s difficult to make money by buying stocks and selling them again the same day.  Not since the internet became a common resource of information, the tools of day trading were not available to an average investor. With easy and all time available internet connections  real time stock results, analysis tools and access to instant trades have become easy access and everybody can day trade. But here are some hazards to avoid.

Learn to roll the dice:  The first step to day trade is to educate oneself about it. Take up classes with a qualified trading consultant/coach. The purpose is to put an end to losing money due to lack of sound knowledge and learn to win and earn profit.

In day trading you hold nothing. Day trading is NOT about holding a stock or any other financial instrument for more than a few minutes, and certainly not beyond market close.

Understand the stock markets. Learn to use stock indexes to evaluate overall performance of the market. Without this you cannot day trade.

    

Losing money at the stocks can make u cranky, sad and depressed. Manage your mood variations in such situations else you will end up making costly mistakes. Wining in this business stock is like wining in sports/business

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 Have sufficient risk Capital. Don’t pay bills or invest your trading capital. Keep sufficient amount for endeavoring in day trading. Save money in your account the day trading occurs and use it for such purpose only

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Be prepared to spend money on tools and stuff such as efficient computer equipment and software and information service resources. For on-line trading, you need a high-speed Internet connection to minimize latency. You will also require specialized software and a variety of different analysis tools, not to mention your real-time research tools (including daily real time access to stock quotes and ticker feeds).

Always create a plan. Success lies in acute planning and hard work. Without a plan, both new and seasoned traders can easily lose thousands a day.

Be a keen observer. Keep track of the market. If you want to be successful at day trading, you need to keep an eye on the markets. Conduct pre and post-market.

Save your profits. Whenever possible, leave your profits in your account and do not spend them. Run your day trading like a business.