Day trading online is not an easy profession. You might be stuck in one of the common pitfalls that often devour newbie day traders. Find out if you are still a newbie trader.
- The Gut Trading Indicator: When you are day trading, you use your gut feeling instead of calmly assessing trading market conditions using technical indicators and trading software and selecting high probability day trades.
- The Gold Rush: You think day trading means that you can make a lot of money in a short amount time.
- Day Trading the News:You are glued to CNBC for your next day trading stock tip. CNBC has a very specific job: To provide enough entertainment to viewers so they tune in and watch. With a lot of people watching, they make more money from the commercials. It's as simple as that. CNBC is fun to watch, and when things get serious; they do a great job reporting. You cannot make a living "trading the news" off of any financial news channel. By the time it appears on television, it is way too late to react. Trading floors have already heard the news and by the time it makes it to the public they are closing their positions, ideally to suckers who just saw the headlines, the news does not provide day trading tips.
- Trading Market Chaser: You continue to chase the trading market. If a certain trading price is going up and the puts are in a long position. Suddenly the trading price pulls back, you start to get nervous and get out of the day trade with a 20 pip loss. All of a sudden, the trading price resumes it seems like an uptrend. You think, "Wait a minute this is easy, I was right all along." You add in a second long position to try and make up for the 20 pip loss. You are hoping to make a profit. Well, guess what, the price doesn't up, it pulls back, and ends at a 25 pip loss. Your day trading P&L for the day: -45 pips.
- Day Trading Slacker: You do not do you homework before the next day trading session begins. You do not examine the charts from all time frames; you do not understand the direction of the overall market trend. You have no idea if employment numbers are about to be released or any other announcements so that you may prepare to handle the trading market correctly.
- The Player: You have indicator commitment issues. You jump from one trading indicator to another. Sure you know little about them all, but you don't know a lot about any specific indicator. Therefore you have no idea which indicator fits your personality and day trading style the best.
- Day Trading Overachiever: You day trade way too much. You trade multiple lots and you think that it will result in a big pay off at the end of the day.
- Day Trading Cowboy: You continue to think that you can learn by day trading by yourself, you will find the secret code, crack this system, become a billionaire and fly away to
Posts
Traders can earn optimum returns by considering market experts views at the time of trading. To learn live updates on stock market on social media platforms join epic research .
ReplyDelete