Day Trading is one of the most exciting activities with an incredible degree of flexibility and provides an amazing amount of opportunity on a day to day basis.
Whilst the idea of Day Trading sounds amazing it is also one of the toughest businesses available with the success rate very low.
The reason for that is many day traders make some incredibly obvious mistakes.
Today we'll take a look at the top 3 biggest mistakes day traders make and how you can avoid them.
1.
Confucius is confused! The greatest day trading mistake I see is not having a clearly defined trading plan or objective on a daily basis.
You need to be crystal clear on your objectives for that day or don't go into the office.
Know precisely what your set ups are for the day, what opportunities are looking like and the exact target of points or pips for your session.
A crystal clear purpose triggers your Reticular Activating System (RAS) into action and enables you to achieve your goals on a daily basis.
2.
Ouch that hurt, should I get back on the horse? Day traders need opportunity.
The more opportunity you take the greater the chance for a losing trade to occur.
So what! A day trader needs opportunity to realize the positive expectancy of their trading system.
Once you have clearly defined your trading edge you simply need to follow your signals.
Guess what? If you get on a trade and you get stopped out, who cares.
It's time to move on and take the next trade.
Remember, your job is to allocate risk and take opportunity whilst realizing your edge in the markets.
Many day traders freeze when taking a loss and are reluctant to take the same trading signal shortly after the bitter taste of a loss.
Forget about it.
You're not going to get rich sitting on the sidelines.
If your edge is present then take the trade and trade your plan.
Simple.
3.
How the hell am I supposed to remember? The 3rd biggest mistake Day Traders make is not keeping a daily trading journal.
This inexpensive trading tool is by far the most valuable asset in your arsenal.
You need to be a diligent record keeper if you are to have long term success in the toughest day job in the world.
Religiously record your days thoughts, trading ideas, plans, successes and failures.
You will be richly rewarded as a result.