Intraday trading is always a risky task, and in the beginning, there are high chances that you might face loss. However, the mistakes done a novice are also common in regular and expert traders, so you are not alone. A single mistake in intraday trading can empty your bank balance and leave you nowhere. So it is best to avoid some common mistakes that are committed by most of the people involved in day trading.
It has been seen that most of the errors committed by traders are made again so there are a lot of factors which should be curbed to cut down mistake. The most important thing that you should as a trader is to control your emotion and maintain a discipline. Discipline and controlling emotion are two factors which can provide you lot of growth. There are a lot of mistakes performed by traders, but this article will provide you the name of some common and perilous mistakes.
Mistakes in Intraday Trading
Most of the time intraday trader commits a lot of errors which leads to face lot of loss. If you are an aspiring intraday trader then you can should rectify the following mistakes to receive good return:
- It is a common mistake that intraday trader avoids following the trends of Sensex and Nifty. They mostly decide their trading depending upon the percentage like if they see that price of a particularly stock falls by a good percentage, then they quick buy those stocks. However when they see the price a particular stock going up, then they immediately short sell all the shares to gain a safe return. One shouldn’t follow this trend because you might not get profit.
- There many traders who never think of their brain rather they get swayed away by emotion while trading stocks. Before starting your intraday trade, always choose your target and stop loss which will assist you in getting profit. Basically day traders mostly try to book their profit in the early stage and hold long in the loss.
- It is a common tendency that most of the intraday traders try to over trade without maintaining any limitation. They always increase their risk percentage and never try to keep a definite risk to reward ratio. They also average in loss trade which is a bad habit. Whenever one trade is in loss always exit from that trade and concentrate on profit trade.
- To get assistance during day trade, most of the intraday traders follow tips from news channel and paper. There is a lot of news shown on the news channel which is mostly rumors, and many traders follow that news. It is always advisable to avoid tips from TV and decide your trade by analyzing the chart.
Always concentrate on day trading rather than focusing on other jobs as day trading is concerned as a full-time job. Most of the day traders never pay full attention during selling or buying which leads them to incur losses. It is not possible for day traders to gain growth without total commitment. So always leave other jobs when the market is open.