Whenever I opened my trading dashboard and observed a script, my mind forced me to take a position in Intraday Trading. So, my hands follow the command and within 5 minutes of login, I automatically hangup with a position. It sucks me and my capital day by day!
Nowadays, I observe that most of my clients love to do the same mistake as me. I advised them to stop it, but I know it can’t be stopped without control your sentiments regarding greed & fear.
Top 5 Common Mistakes Of Intraday Traders
So, today I discuss most of the common mistakes which love to do most beginners. Also, I guide you to escape from the trap and learn you how to control your sentiments while stock market trading.
I have discussed here top 5 common mistakes in Intraday Trading which may finish your future in Stock Market Trading.
1. Make A Position As Soon As Possible
Problem: Most of the new trader login to their trading dashboard and select their favorite script within minutes. After that they command their mind to think “What should I do now, Buy or Sell?”.
Within the next 3-4 minutes, they enter to a position like a throw a coin and follow Head or Tail.
But my dears, Stock market Trading is not a gambling, its a profession like other valuable jobs.
Solution: Imagine yourself as a father and your son asking you “What should I do now, Buy or Sell?”
I am sure your answer will be like this “Wait, my boy, don’t be Rush! at first, make a strategy and clear about your decision, then enter into a trade.”
Then why you can’t implement the same with you while trading?
2. Penny Stocks Selection
Problem: Penny stocks can be afforded by beginners. Its price percentage movement attracts Un-Experienced traders. But, believe me, penny stocks trading can destroy your financial life! Let me explain!
When you go for choose your life partner which types of quality wish to grab, lower quality, higher quality or a perfect match for your position?
If you choose lower quality life partner means the mentally poor, financially poor and also the handicap, Your future into the dark.
Same as penny stocks; if you attracted by their price value and go for the trade, your future will be in the dark.
One n only solution is “Beware from trade on Penny stocks”.
Let me explain the “why’,
Because penny stocks don’t follow the rules of technical analysis as well as fundamental. new traders believe that once a day their selected penny stock become a Multibagger and give huge profit. But the actual real truth is penny stocks never become a multibagger. I will discuss it in my next blog post that “How to filter a future multibagger”.
3. Over Trade
Problem: When I trade and got profit, I automatically enter another trade and make some more profit. But the process running till the big loss which eats my previous profits.
In another situation when my first trade faced some loss, I tried to recover my loss and book another loss and loss and loss!
Anybody faced the situation? You can express it in the comment box, it may help beginners to trade safely.
Solution: The solution of overtrading is very easy and simple! Before entering a trade you have the pre-defined Target and StopLoss. If your target achieves, that’s fine. Now close the trading platform. But if hit the StopLoss, don’t try to recover the loss on the same day, because your analysis is not working for the day. Try to recover the next day when your analysis can follow up the Stock Market movement.
4. Whole Capital In One Trade
Problem: I discuss this problem not only for beginners as well as running traders. We know the term “Safety first, Safty must” but sometimes forgot to follow it.
New traders become too much greedy about the leverage (loan amount), they select a script to trade and calculate their capital with the available leverage. Finally, find out the maximum quantity which is possible to Buy/Sell with the help of provided leverage.
In case you lose the trade, lose the big part of your capital ( some time lose the whole capital ).
Solution: Don’t use your 100% capital in one trade. Choose more than 3 scripts for the day and divide the capital into those scripts. But, mind it, each n every script should be chosen from different sectors, not from the same sector.
5. Earning Without Learning
Most of the beginners try to earn money from Stock Market Trading without learning the basic concepts.
Where to learn?
Use these links to enhance your practical trading knowledge;