The most deadliest Intraday trading mistakes and the solutions to overcome and to become Intraday trading Winner.
In the Day trading there is huge failures are registering and they were loosing the money as it’s highly risky and highly monetising. Everyone seeing the money not the risk. this is the main reason for the failure. The buzz about the day trading will lead the people to enter into the day trading without any knowledge. Here we discuss the most deadliest intraday trading mistakes which can make our capital Zero. So please learn something and keep practice the same in paper trading, after you get more confidence then only trade with real money.
1. OverTrade (Too much trading – Multiple Trades)
This is one of the main reason for Big losses in Day trading. taking too much trades is always leads to a big losses after a loss. after first SL hits, the human psychology alway leads us to recover the money, in the process of recovering the loss we might loose more money. So what we need to do ? Always have trading plan prior to starting day like where to enter, where to exit, stop loss and target, so everything you should plan and execute the same. otherwise you are not suppose to trade without plan or if market is not moving as per your plans. Also fix the number of trades or amount of loss. Then finally take a small break after a loss, so that the break will make you refresh and there will be time to think about it and plan further.
2. Holding loss Trade will always cost you Big
Holding the loss trade and exiting the profitable trade earlier both are the big mistakes in day trading as they both will make us greedy. so we should have a strict stop losses for every trade. Also we should have a reason to exit at somewhere at the stoploss. just think about it otherwise still you are a learner, you need to learn more about day trading and the candle sticks. we need to fix the stoploss and the target before we enter into the trade.
3. Taking Unlimited Risk without any prior Trade Plan
Without knowing proper risk management and position sizing we can’t trade in indexes as they leads us to make our capital or trading account Zero in a single day. to avoid these things we should fix our daily targets, both for earnings and losses. By setting daily risk limits we can avoid such a big losses in a single day. in my view we can risk 1% of our capital per trade and 5% of the capital per day. so you should plan your daily position sizing as per our risk limits. else your trading account will be remain zero, evey time you add funds.
4. Executing Unplanned Trades
Executing unplanned trades will cost you big. you should have a reason for an entry as well as for exit. Always try to execute a back tested strategy. if you don’t have your own strategy and following others, don’t make real trades as per their strategy, first back test any strategy that you built or others, if you satisfied with the results then only trade that strategy with real money. don’t trade too many times without knowing proper trend or direction.
5. Fix your Mindset First then Trade
Always remember Day trading is just a probability play. Just you believe there is equal chances means Fifty Fifty chances for both winning and loosing and it’s not a prediction game. Don’t try to defend your mindset and your analysis while it’s moving opposite to your direcition. It’s always better that to exit the trade by giving respect to the market else it will cost you big. So please fix your mindset first then trade, never change your stoploss points to the down and down as market is going opposite to your view.
Conclusion :
So please follow the rules above mentioned which will makes you to be profitable, atleast to not make big losses, for anything our mindset is very important in day trading. so keep following the rules as it’s involved our real money. Always do focus on risk management which will protect you from big losses. above discussed points will play a key role in day trading, keep remember the above points to become winner in day trading. Keep follow the rules and have a profitable Day Trading. That’s all about Deadliest Intraday trading mistakes and it’s Solutions
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