Top 3 Mistakes of a Day Traders and Ways to Avoid Them

Day trading can be one of the best activities you can do with a wide level of flexibility and gives you an amazing opportunity daily. Even though Day Trading sounds great it can be one of the toughest businesses you can do with quite low success rate. One huge reason for this is that most day traders make some incredible mistakes. Today, we’ll look into the top 3 mistakes that day traders commit and ways to avoid them all.

Confucius is confused!

One grave mistake a day trader can commit is not having a clear plan and objective on a daily basis. You need to be crystal clear on your objectives for that day or don't go into the office. Know precisely what your set ups are for the day, what opportunities are looking like and the exact target of points or pips for your session. Having a clear cut purpose triggers the Reticular Activating System (RAS) into action and allows you to reach your goals in a daily basis.

Should I get back being on the horse even if it hurts this much?

Day traders need opportunity. The more opportunities you take the more chances you get for having a losing trade. So what! An opportunity is what the day trader needs for him to realize the positive expectancy of his own trading system. Once you have a clear understanding of your trading edge you simply have to follow the signals. Guess what? If you get into a trade and you were stopped, who cares. It's time to move on and take the next trade. Bear in mind that you are tasked to allocate risk and take opportunities while you realize your edge in the markets.

A lot of day traders freeze when they take a loss and they are hesitant to take the same trading signal shortly after tasting the loss. Forget about it. You’ll not get rich by merely sitting on the sidelines. If you have the edge then take the trade and trade the plan you have. Simple.

How the hell am I supposed to remember?

The third largest mistake that day traders make is not keeping a daily trading journal. This inexpensive trading tool is by far the most valuable asset in your arsenal. You have to be a diligent record keeper if you aim for long term success in this toughest day job you can have in the world. You only need to record your thoughts, trading ideas, plans and successes and failures as well. You will be richly rewarded as a result.

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