Tuesday, 17 March 2009

Day Trading Online Mistakes By Day Traders

Learning from other's day trading online mistakes is a lot less painful than making your own day trading online mistakes. Lets take a look at 10 most common day trading online mistakes by day traders.

Day Trading Online Mistake #1: Under Funded Account
One very common day trading online mistake to make is being afraid to actually trade. Therefore, day traders often start out with very little money. However, day traders need enough capital to have the chance to make some money and lose some money. Losing is a valuable lesson in day trading; just make sure you learn your lesson from every loss that you make. No having enough funds in your day trading account will rob you of valuable learning experiences.

Day Trading Online Mistake #2: Picking Up Trading Along The Way
If you think you can pick up day trading as you start day trading online, you will most probably lose all your money. It is not that easy and it usually sends day traders into a downward spiral. The loss of money will make one an emotional day trader and that will make a day trader lose even more money. Before a day trader enters a day trading arena, they ought to be fully prepared to handle the markets. Do you homework, know the risks and how to handle the markets and come out on top of the trading markets.

Day Trading Online Mistake #3: Trading is like Collecting Stamps
Day trading online cannot be just a hobby. Day trading online is serious business. It requires the same amount of effort that one puts in a small company or a business. It requires a day trading plan, research, goals and returns.

Day Trading Online Mistake #4: Overconfidence
Just because a day trader made money on one trade or a few of them does not make them an expert. The day trading markets are cruel and wild. Day traders have to be on your toes. The second that a day trader thinks that they have the markets all figured out, is the second that day traders are playing a losing battle. The best thing to do is to have confidence that you are trading the right market and the right indicators for your personality.

Day Trading Online Mistake #5: No Day Trading Plan
Why do traders insist on trading without a day trading plan? The same way that a business should not operate without a plan, a battle should not be fought without a battle plan, day trading should not be attempted without a proper day trading plan.

Day Trading Online Mistake #6: Day Traders Not Following Their Plans
One of the most common mistake and a hard to break mistake for day traders is the temptation to not follow the day trading plan. The reason for this is usually an impulse, or an emotion that has overtaken the day traders trading plan. Stick to your plan. It is hard at first, but eventually you will see the importance in this concept while day trading online.

Day Trading Online Mistake #7: Day Trading Egos
A day trader has to be humble in front of the day trading markets. A professional day trader knows that he/she cannot always be right on every trade. Day traders should not go into trading with anything to prove to anyone. The markets are not judging the day trader. A day traders' sole goal should be to make money and that requires the acceptance of some ups and downs as well.

Day Trading Online Mistake #8: Bad Accounting and Management
Day traders should not over trade. A day trader should trade the lots size that they are comfortable trading in the markets. A day traders ultimate goal should be to stick to his/her parameters.

Day Trading Online Mistake #9: Trying To Get Rich Quick
Day trading means setting realistic attainable goals for one self. If a day trader try to make a million dollars over night, they might lose more because of their unrealistic goal. A day traders' goal should be to learn how to be a good day trader. Once that is accomplished, making money will be part of the package.

Day Trading Online Mistake #10: Never Looking In The Mirror
Day trading does not mean you have to beat yourself up over your trades and trading decisions, however take some time to see why you chose the setups and the decisions that you chose. Try to find our what made you not follow your day trading plan on a particular trading day. Day trading successfully means learning from your mistakes and understanding yourself and your actions.