We will discuss here some common and big mistakes which day or intraday traders generally do. Every intraday or day trader does some common mistakes which can vanish his whole capital or maybe result in a big loss. Here are some common mistakes that unprofessional and untrained day or intraday traders do.
Day or intraday traders generally do one common mistake that they do trade against the market trend. Suppose a stock starts falling and falls up to 5%, 10%, and unprofessional intraday trader starts buying that stock in the opinion that the stock can not move in one direction and it will take some or high U-turn. An unprofessional intraday trader buys a stock that is already 5 % down, the stock again falls 5% more he buys more, the stock keeps falling continuously and end of the trading session came and unprofessional intraday trader have to square off his trade in a big loss. In another case, if a stock starts moving up and moves 5%, 10% , and unprofessional intraday trader starts short selling, and that share keeps moving up and at the end of the day, and the unprofessional intraday trader has to square off his trade in a big loss. The moral of the story is if an unprofessional trader trades against the trend of the market without analyzing charts or reason behand going up or down definitely he will be at a loss. Get intraday tips with one of the best stock tips provider in India.
The second common mistake intraday traders do is they book profit early and hold their loss. Generally, every intraday trader decides entry of level, target, and stop-loss before their trade. But the common mistake intraday traders do is they book their profit before their target price and if unfortunately the trade starts moving in an adverse direction and came near to stop loss or stop loss triggers, the unprofessional intraday trader removes stop loss and keeps hold of the loss-making a trade. So this practice maximizes the loss and minimizes the profit. Although the strategy must be how to maximize the profit and minimize the loss.
Most of the traders do mistake to average the loss bearing trade. Suppose if an intraday trader buys stock in Rs. 100 and his stop loss in 98 when trader comes to near 98 instead of squaring off that loss-making trade the unprofessional trader buy more at 98 in the hope that his average cost would be 99 now and if even stock moves 100 he will be in profit. Keep in mind that if the market starts moving in the adverse direction of your prediction and you keep trading against the market and keep averaging the market will definitely punish you and your whole capital may ruin. So never do average in intraday trading.
Nowadays there is the era of media and social media. Sometimes some mischievous elements spread humor in the market through media or social media. Some innocent and unprofessional intraday traders believe in that rumor and trade accordingly and trap, resulting in a loss. Never do trade on media or social media rumors.
Nowadays most traders provide leverage to their clients to get volume and increase their brokerage. Because of this facility intraday trader with the help of leverage trade beyond their capacity if unfortunately, the trade goes in a loss that loss will be huge and unprofessional intraday trader may lose his big portion of capital or maybe whole capital. A professional intraday trader must not do trade beyond his capacity with the help of leverage.
We will discuss here some common and big mistakes which day or intraday traders generally do. Every intraday or day trader does some common mistakes which can vanish his whole capital or maybe result in a big loss. Here are some common mistakes that unprofessional and untrained day or intraday traders do.
Day or intraday traders generally do one common mistake that they do trade against the market trend. Suppose a stock starts falling and falls up to 5%, 10%, an unprofessional intraday trader starts buying that stock in the opinion that the stock can not move in one direction and it will take some or high U-turn. An unprofessional intraday trader buys a stock that is already 5 % down, the stock again falls 5% more he buys more, stock keeps falling continuously and end of trading session came and unprofessional intraday trader have to square off his trade in a big loss. In another case, if a stock starts moving up and moves 5%, 10% , an unprofessional intraday trader starts short selling, and that share keeps moving up and at the end of the day, an unprofessional intraday trader has to square off his trade in a big loss. The moral of the story is if an unprofessional trader trades against the trend of the market without analyzing charts or reason behand going up or down definitely he will be in loss. We are also providing tips in stock future tips with single target and single stoploss.
Second common mistake intraday traders do is they book profit early and hold their loss. Generally every intraday trader decides entry of level, target and stop loss before their trade. But the common mistake intraday traders do is they book their profit before their target price and if unfortunately the trade starts moving in adverse direction and came near to stop loss or stop loss triggers , the unprofessional intraday trader removes stop loss and keeps hold the loss-making trade. So this practice maximizes the loss and minimizes the profit. Although the strategy must be how to maximize the profit and minimize the loss.
Most of the traders do mistake to average the loss bearing trade. Suppose if an intraday trader buys stock in Rs. 100 and his stop loss in 98 when trader comes to near 98 instead of squaring off that loss-making trade the unprofessional trader buy more at 98 in the hope that his average cost would be 99 now and if even stock moves 100 he will be in profit. Keep in mind that if the market starts moving in the adverse direction of your prediction and you keep trading against the market and keep averaging the market will definitely punish you and your whole capital may ruin. So never do average in intraday trading.
Nowadays there is the era of media and social media. Sometimes some mischievous elements spread humor in the market through media or social media. Some innocent and un professional intraday traders believe in that rumor and trade accordingly and trap, resulting in a loss. Never do trade on media or social media rumors.
Nowadays most of traders provide leverage to their clients to get volume and increase their brokerage. Because of this facility intraday trader with the help of leverage trade beyond their capacity if unfortunately, the trade goes in a loss that loss will be huge and the unprofessional intraday trader may lose his big portion of capital or maybe whole capital. A professional intraday trader must not do trade beyond his capacity with the help of leverage.