subject: Stock Market: Common Fatal Mistakes in Day Trading Part 1 [print this page] Stock Market: Common Fatal Mistakes in Day Trading Part 1
Here are 4 deadly mistakes that most people encounter, whether they may be novice or veteran traders. Avoid them at all cost.
Using the scared money. Each trader has a risk capital but sometimes the trade calls for them to go overboard and use the money that they do not have, they are afraid to lose or simply the money that should not be used in the trade.
Natalia Osorio Editor of the "Best Stock Trading" website -- http://www.BestStockTradingUsa.com -- pointed out;
"These include money for college tuition, bills and payments that were allocated to some other uses beforehand. Day trading is such a tricky business that if someone is not careful enough, he might end up in a ditch wondering where he could borrow some money to continue the trade or how he could make up for the money he lost. There are two main objectives in this trade- to be able to trade for another day and profit from the trades you make for today. But as much as you can help it, don't use other people's money or your money reserved for other important things. If you have no money or too little money to put in line, try to be a lot more discriminatory on your trades or you might as well wrap up and venture into another business"
Taking too much time
Time is a commodity in trading but it can't be bought. Time often defines the difference in choosing between a closing and a winning trade. Many people want to be certain when they make their trades therefore taking up too much time that by the moment they decide to get in the trade, it has already closed or it has already started sliding down.
Lack of Moderation
"If someone sees that his trades are going straight up, he usually has an adrenaline rush which urges him to be more excited and uncontrollably glad. But this does not end here. He starts to feel the confirmation that his system works and that he is the greatest guy in the world. It is ok to be glad and to be excited but when it comes to the point that one's judgment becomes clouded by the lack of moderation in emotions, he has to pull the stops and stand back unless he is willing to lose the day because of his emotions"N. Osorio added.
Reliance on opinion
The market does not work based on people's opinions. It works on the behaviors of the trends, the economy, constant buying and selling, etc. but definitely not on what a "trading guru" says or thinks about day trading.
Further Information About The Best Stock Trading Course And Additional Resources By Visiting; http://www.BestStockTradingUsa.com
