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Source :http://www.daytradinginvesting.com/day-trading/five-reasons-traders-lose-money-in-day-trading
If you’ve been Day Trading
for a while and you are experiencing loses, or your winnings are dismal
to the point of being depressing, you should consider the five points
listed below very carefully. One or more of them will likely explain
why you are having this experience
Not having a Journal
You need to keep record of
your tradings, not only the winning ones, all of them, there is always
something to be learnt, even from the losing trades, so get in the
habit of keeping a log of all your tradings.
Overtrading
Trading more than your capital
allows, or trading more times than you should, are two sides of the
same sin. Most of us, have sometimes been guilty of it. Successful
traders don’t jump into every possible trader, successful traders are
like wildcats, waiting for its prey, AND in the most advantageous
circumstances. So, become a Wildcat at day trading!
Lack of a Trading Plan
Markets behave randomly,
according to supply/demand, however there are times where a trend is
clearly defined, and those are the moments in which the probability of
success is higher. Identifying those trends is not an easy task, and
sometimes once you take a position something may go wrong. That is the
main reason to have at least a short term plan. Something like setting
the minimum winning target point and the maximum losing target point is
a good start
Lack of Focus
Never trade under any distracting circumstances; Day Trading
needs attention, so never trade, if you have a personal, professional,
or any other particular problem which takes your mind away from Day Trading,
besides, from a psychological point of view, you may make wrong trading
decisions. Trading on such a short time frame requires you to be able
to make split second decisions, and you’re risking a lot of money when
you do. Make sure your mind is sharp and your emotions are centered
when Day Trading.
Lack of discipline
Abide by your rules, mistakes
are costly, and your money is on the line of fire. Never depart from
your rules no matter how good a trade “looks” or “feels” to you if it
violates your objective and back-tested rules.
In summary, EACH of the items listed above is critical to your day trading success.
Happy Trading!
If you’ve been Day Trading
for a while and you are experiencing loses, or your winnings are dismal
to the point of being depressing, you should consider the five points
listed below very carefully. One or more of them will likely explain
why you are having this experience
Not having a Journal
You need to keep record of
your tradings, not only the winning ones, all of them, there is always
something to be learnt, even from the losing trades, so get in the
habit of keeping a log of all your tradings.
Overtrading
Trading more than your capital
allows, or trading more times than you should, are two sides of the
same sin. Most of us, have sometimes been guilty of it. Successful
traders don’t jump into every possible trader, successful traders are
like wildcats, waiting for its prey, AND in the most advantageous
circumstances. So, become a Wildcat at day trading!
Lack of a Trading Plan
Markets behave randomly,
according to supply/demand, however there are times where a trend is
clearly defined, and those are the moments in which the probability of
success is higher. Identifying those trends is not an easy task, and
sometimes once you take a position something may go wrong. That is the
main reason to have at least a short term plan. Something like setting
the minimum winning target point and the maximum losing target point is
a good start
Lack of Focus
Never trade under any distracting circumstances; Day Trading
needs attention, so never trade, if you have a personal, professional,
or any other particular problem which takes your mind away from Day Trading,
besides, from a psychological point of view, you may make wrong trading
decisions. Trading on such a short time frame requires you to be able
to make split second decisions, and you’re risking a lot of money when
you do. Make sure your mind is sharp and your emotions are centered
when Day Trading.
Lack of discipline
Abide by your rules, mistakes
are costly, and your money is on the line of fire. Never depart from
your rules no matter how good a trade “looks” or “feels” to you if it
violates your objective and back-tested rules.
In summary, EACH of the items listed above is critical to your day trading success.
Happy Trading!
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