Mistakes to Avoid When Day Trading | Dhanashri Academy

1. There are many mistakes you can make when trading but some mistakes come into sight more or are worse in Day Trading. You cannot keep away from taking losing trades but you can avoid making mistakes or at least keep them to a minimum. Many Day Traders Feels They Need to Be In A Trade All the Time Just for the reason that you are a Day Trader and thereby an active trader does not essential mean you have to have one or more positions on every minute of the day. Many traders feel the require to trade as soon as the market opens and all the way to the closing bell. Successful Day Trading does not include trading on “speed”. You still have to stalk your trade. Follow your rules and strategy and stay patient and wait for the right setup which is the high odds trade. Do not make mistake of thinking Day Trading means “be in trades all day”! Day Trading Education Trading Around News A Day Trader is more susceptible to news during the day. This is because a Day Trader has a lot tighter stop than a swing trader or long term trader. So just for the reason that you used to hold during news when you were swing trading does not mean you can do the same when Day Trading. There are many kinds of news during the day that can move a stock or future, enough to stop you out at your tight stop loss. This could be a Fed announcement, ISM numbers etc. So a mistake to avoid is Day Trading around news as the price spikes will likely stop you out resulting in a loss. Another mistake Day Traders often make is not showing up to “work” prepared. Just because you are a Day Trader does not mean you shouldn’t work outside the opening hours. A Day Trader should always prepare his trading day with, at least, the most important things such as support/resistance levels and what news is coming out that day. These are only a few of the mistakes that Day Traders make but be careful and avoid making the same mistake twice.