Source: Indrazith Shantaraj
If you’re new to day trading, mistakes are inevitable. However, by avoiding some common pitfalls, you can stack the odds in your favor and set yourself up for success. Here are six mistakes to avoid when day trading:
First, avoid revenge trading. This is when you trade impulsively after losing money on a previous trade in an attempt to “get your money back.” Not only is this emotional and prone to further losses, but it’s also one of the easiest ways to blow through your trading capital.
Second, be aware of market volatility. There are times when the markets are more volatile than usual, and prices can move very quickly. If you’re not comfortable with this level of risk, staying on the sidelines during these periods is best.
Third, don’t try to imitate others. There’s no one-size-fits-all approach to day trading; what works for someone else may not work for you. Instead of blindly following another trader’s blueprint, develop your own strategy that considers your strengths and weaknesses.
Fourth, don’t aim to make millions in one day. While it’s possible to make a lot of money from day trading, it’s more likely that you’ll see slower and steadier gains. Aiming to make millions quickly is the sure-shot way to lose all your capital!
Fifth, Clarity is Power. Please note opportunity exists in all the timeframes. Whenever we get into lower timeframes, we get more opportunities. But this advantage comes with more risk and noise. Hence always be prepared to encounter some failures in your trading.
Sixth, Stay away from MTM screenshot people. You will find many traders who display only their fat MTM profit screenshots after market hours (without sharing their trades in the live market). Please stay away from such people as they always trigger your emotions, damaging your trading results.