Avoid these basic mistakes to become great Day Trader
If you want to get rich day trading, then it’s probably a good idea to not make huge mistakes on a consistent basis. That’s not to say that the most successful day traders don’t make mistakes from time to time. In fact, making mistakes and experiencing failure is just part of the game, and should be treated as a learning curve to improve your skill level.
However, there are many day trading mistakes that can be avoided altogether. These are the type of mistakes that beginners make over and over again, and is one of the main reasons why they end up broke.
Instead of having to go through all of this yourself, it’s much easier to recognize them before they happen. You can do this by taking note of the following day trading mistakes.
Not having enough money
Because many beginner day traders are scared of risk and losing money, they are cautious of putting too much money in their day trading account. Sure, they might not go broke using this strategy, but they’re not likely to win big either.
Don’t be afraid to put extra money in your day trading account when you are just starting out. Yes, you might lose a lot of it, but you will gain valuable experience which will actually make you more profitable in the long run.
Treating it as a hobby
If you want a hobby then start collecting stamps. However, if you are serious about actually making money from day trading, then you need to start treating it like a business.
This means that you have to take the time to develop a plan and strategy, as well as putting the hours into researching the market. You also need to decide what your short and long term goals are, so you can track your progress along the way.
Becoming too confident
It’s very common for a new day trader to have a big success in their first few trades. They then start to think that they are a “natural” and “born to do it,” and start approaching new trades with a confidence that borders on being reckless.
There’s nothing wrong with being confident, but one of the biggest day trading mistakes is when that confidence turns into recklessness. The markets can be extremely volatile, and in the the blink of an eye everything can change. Professional day traders know that a mix of confidence and caution is the way to go.
Looking for the magic button
It can be very easy to get into the “get rich quick” mindset. You hear the story of that guy that made a million dollars overnight and you decide it will happen to you too.
Sure, some people do make a lot of money quickly in day trading, but it’s usually because they have many years of experience and knowledge to draw upon. If you are looking for the magic button in day trading, then you might stand a better chance by buying a lottery ticket.