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These Are 4 Mistakes that Should Be Avoided If You Are A Day Trader
Prepare to "drop" right at the time they heard the news
Everyone knows the news events announced will make the market move, but no direction is unknown. Yet there are many who are confident that it is possible to predict the "will," such as the Federal Reserve will not raise interest rates, the market will go down.
You should be realistic that we do not know how the market will react. It is not the news that is the only factor that moves the market at that moment, that moment of market volatility is extremely illogical.
So do not try to pre-order to "fold", but win less then the risk is much. It is not a good thing to play one.
Transaction after news published
Will the market fluctuate at the moment of news? It's correct. However, strong fluctuation does not mean easy profit. If there is no clear strategy, the best advice is not to trade. That is why many veteran trade veterans are still advised not to trade the time before, during and after the news.
You should wait for the "absurd" fluctuations to slow down and wait for a clear, definitive trend that is sure to follow after news releases. That way, we can manage the risk accurately, manage money accurately.
Risk of over 1% of capital in a transaction
Almost all the trading day that I have met no one adhere to this rule. People seem to be big adventure to eat big. Usually during day trading you never risk more than 1% of capital in one order, everything changes very fast when trading day.
"You want to make money fast, you have to have violent hands", I disagree with this idea. Play still make money fast, look at the point or not. I play hard and the psychology to earn points in favor, not play to psychological hurt
For example, a trader with a $ 1,000 account can lose up to $ 10 a day according to this rule. There are people who account up to $ 50,000, can not lose up to $ 500 per day.
The purpose of this method is to ensure that no transaction has a significant impact on the account.
Unrealistic expectations in the transaction
Expectations of what must also be true. Do not look at the chart is going flat, expect a rise of 300 pips is no where. The best way to avoid unrealistic expectations is to trade for the lost experience, then your real mindset then build a clear trading plan. If it produces stable results, do not change it so trade. As capital grows over time, increase the size of the order can increase profits or deploy and test new strategies.
For day trading, for example, the market is more volatile at the beginning of a trading day, meaning that specific strategies used during market openings may not work during the day or near the end of the day.
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