1. Unplanned Trading
The most important move a Intraday trader can make is to develop a trade plan.
the trade plan should include the money you are gping to invest. The money has to be consistent and avoid crossing the line. Also, one should plan the entry and exit point and stop loss points before entering in trade.
2. Un-Controlled Risk
One should calculate the risk before entering in trade. Also, the profit objective should be clear with stop loss control. Stop loss control can proven from undue losses.Control is of utmost importance. Avoid greed. And, it is better to go with safe trades rather than risky trades.
3. Skipping Stop Loss
Stop loss is generally avoided as sometimes we see the market rises after we have sold or bought. But, we fail to understand, it can be reverse too. So, it actually saved from a lot of losses too. Protective stop loss should be correctly evaluated and decisions should be made technically bypassing greed and emotion.
Emotion and greed let us buy and sell at wrong price.
4. Taking Small Profits and Letting Your Losses Run.
Losses should be stopped by stop loss orders. Small profit again and again can lead to more profit that waiting for a single big trade. Also, shortening your losses can help you eating less pie within the profits.
5. Avoiding Discipline
When you have preset limits for gains and losses, we tend to maintain discipline when limits are reached. This loss of discipline leads to losses and frustration.
6. Over Trading
Risking too large a percentage of your account balance on any single trade or a large amount of money on a news or expectation. You should maintain discipline to the amount committed to your account. Never over risk your money otherwise in the end you will end losing money.
7. Frequently Changing Trading plans
The best approach is to not change your trading strategy during trading hours until and unless there is some breaking news or disaster than will make the market change direction abruptly.
The most important move a Intraday trader can make is to develop a trade plan.
the trade plan should include the money you are gping to invest. The money has to be consistent and avoid crossing the line. Also, one should plan the entry and exit point and stop loss points before entering in trade.
2. Un-Controlled Risk
One should calculate the risk before entering in trade. Also, the profit objective should be clear with stop loss control. Stop loss control can proven from undue losses.Control is of utmost importance. Avoid greed. And, it is better to go with safe trades rather than risky trades.
3. Skipping Stop Loss
Stop loss is generally avoided as sometimes we see the market rises after we have sold or bought. But, we fail to understand, it can be reverse too. So, it actually saved from a lot of losses too. Protective stop loss should be correctly evaluated and decisions should be made technically bypassing greed and emotion.
Emotion and greed let us buy and sell at wrong price.
4. Taking Small Profits and Letting Your Losses Run.
Losses should be stopped by stop loss orders. Small profit again and again can lead to more profit that waiting for a single big trade. Also, shortening your losses can help you eating less pie within the profits.
5. Avoiding Discipline
When you have preset limits for gains and losses, we tend to maintain discipline when limits are reached. This loss of discipline leads to losses and frustration.
6. Over Trading
Risking too large a percentage of your account balance on any single trade or a large amount of money on a news or expectation. You should maintain discipline to the amount committed to your account. Never over risk your money otherwise in the end you will end losing money.
7. Frequently Changing Trading plans
The best approach is to not change your trading strategy during trading hours until and unless there is some breaking news or disaster than will make the market change direction abruptly.
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