Don’t Trade Or How To Avoid 5 Deadly Day Trading Mistakes. Best trading strategy for intraday for daily profit
The Most Forex trader always laid in this 5 Deadly Day trading Mistakes and How to Avoid them in Day Trading. We curated this Tips for day traders. Every trader makes some or other mistakes in day trading that’s ruins their entire capital.
Sometimes they can lose their capital in a day too. We have listed some common but the most dangerous 5 deadly trading mistakes that a novice or unprofessional traders does in share market.
Mistake No. 1 Intraday traders do not trade with Trend Generally
Every Successful Trader said The One Rule of the Forex Very strictly follow, Keep It Simple – Trade With The Trend. But not happen in the forex.
Forex Intraday traders looks percentage If stocks falls by by 5% ,10% or 15%, some traders Rush for buying the stocks. If A Stock is up by 5%, 10% and may be 15% some traders go for short selling in those stocks.
Successful intraday trader always advise traders to trade with Forex trend and the overall Market Trend. Never trade opposite of the Market trend in Day trading.
Professional trader advised traders to not to buy stock which have fallen 10% & 15 % it will never come up in Intraday trade, might be possible that they can cover in 2-3 days, and you will never get profit in this type of against the trend trading. Try to avoid mistake.
Mistake No. 2 Day Traders Book profit Early and hold in Loss.
Forex Market profit always depends on the trader mindset and trading discipline secrets of a professional trader. Intraday traders always hurry in booking profit and hold long in Loss. It’s a problem with lot of traders, and it’s based on the emotions of every trader.
They trade with heart and not brains and make them lose their hard earned money. We request every day traders before trading decide the Target and stop Loss for the trade and then put a buy or short sell order. If stop loss trigger’s exit immediately don’t change the stop loss price at all.
Also in profits place trail stop loss orders, so that if on every up move of the stock, your stop loss also moves and you are sure to get maximum profits.
Mistake No. 3 Intraday traders Average in Loss Trade.
95% of Forex traders lose money: myth or fact, Forex winners 5% and losers 95%. Because 90% Day traders do Average in Loss trade. Professional trader advise if Buy or Sell trade is not in your favour exit immediately and never do average in loss trade.
Same way if your one trade is in loss exits from that trade and hold a trade that is in profit. We recommend traders to average in profits instead of loss. A good trader wins just 4 times, but he makes sure that he will make big win and every time he makes a bad decision, he cuts the loss fast. And in same way, a bad trader might win 6 times , but every time they are in hurry to book their profits (so they earn small every time) and when they are in loss, they do not book their losses fast (no money management rules in place) and hence let their losses grow because they can’t accept they made mistake (Ego) . Risk Management is very important for day trading.
Mistake No. 4 All Day traders follow rumors and Media News.
Many Day traders get stuck in the “trap” of trading the news and putting too much emphasis on fundamental analysis. “technical analysis or fundamentals debate” Generally day traders follow their charts and News paper tips and Media tips.
Professional Trader advise always avoid this crab at once. and please do not follow these type of rumors and news tips. Because some time one Tv channel recommending buying and same stock other Tv channel suggest for selling. Traders should try to read charts and anaylse them for day trading.
Mistake No. 5 Intraday traders do Over Trading.
Here are Three danger signs that you may be overtrading.
You need to borrow money to get through each month….
Your profit margins are low. …
Your accountant’s face has gone green.
Intraday traders do great mistake of over Trading. Any global news or domestic news can caused a reverse trend in stocks at any time. Some time even quarterly results can also become movers and shakers for a stock.
Trade with market trend, once trend is clear, trade accordingly.
Don’t follow rumours and media news, trade on technicals only.
Market opens every day so don’t plan to be rich in one day doing day trading.
Don’t trade using the entire margin given by the broker.
Don’t short when the stock is on the up move in intraday.
Don’t buy when stock is in downtrend for day trade.