Trading is nothing but a profession where you are risking your money to earn money and if you are not smart enough then you will keep losing money without earning any. Trading is a risky thing to do but if you are smart enough and follow a few risk management rules then you might be able to reduce the risk from it. When you are a trader you will lose some money and it is quite natural because you cannot always predict the market correctly. After all, the trading market doesn’t follow any rules. But if you keeping repeating mistakes then no rules or person can save you from losing your trading balance. Now, we are going to talk about a few common mistakes that a day trader makes.
Trading with no stop loss
A day trader is a kind of trader who doesn’t like to keep his trades open for multiple-day rather he will close every trade before his trading day ends. In this period, most of the day trader always be in front of his trading desk as result the think about closing any trade by himself as he doesn’t use any stop loss and take profit level. This is one of the biggest mistakes of day trader because no one knows what situation may occur when the trade need to be close. Situations like bodily necessities, load shedding, and even a drop in their internet connection may occur anytime so you may not able to close the trade exactly when you need to.
As a result, you might lose your potential profit or lose more money than you can afford to lose. Even if you have studied about this market then you know that market can make any moves with just a blink on an eye and for that reason even if you have used stop-loss that might not be called in the fixed place. So using no stop loss is one of the common mistakes that a day trader does.to reduce the risk at trading, try to use the best paltfrom in Hong Kong. You can get it here.
Don’t start the day correctly
Here start means before you log in to your trading account you just need to prepare yourself perfectly for your trading day. You need to have a fresh sleep if you want to have a clear head in the morning and without a clean head making trading decision is quite difficult. You must need to make a trading plan for the day before doing that you must search for if there is any news to an announcement coming that day which might affect the market. By doing this you can predict and analyze the market perfectly but very few day traders follow it and as a result, they lose their money.
Letting your emotions drive your decisions
When you are a day trader there may be days like when you cannot find any signals or you are in a losing streak and it is quite natural. It is not mandatory that you have to find trade daily, but many traders cannot control their emotion and let their emotion control them and lead them to open trades which don’t make any sense. As a result, they make more mistakes and lose more money. We will always suggest you trade when you are in an emotionally good state and don’t bring your problem to the market. If you are frustrated with your problems and you can’t control it when you are in at your trading desk then try to avoid trading until you get back your normal emotional state. But usually, traders aren’t able to do that and as result, they lose money.
Overtrading is another common mistake that a day traders make and this can happen because of greed or overconfidence. When you are a day trader you must need to fix how much risk you are going to take for that day according to your day trading plan and you should not try to open more positions than that. But sometimes when traders find good signals or in winning streak then they try to open more positions than they are planned for and because of that, they increase the risk exposer.
If you are a day trader try to avoid these mistakes and this is not the only mistakes that a day trader does. Search for more mistakes and avoid them if you want to stay alive in this market and if you can survive here then you will earn money from here for certain.