Mistakes in long term investing can rob you of potential profits or even cause substantial long term portfolio losses. Day trading mistakes can cause the same sorts of problems but within hours instead of days, weeks, months, or years! Day trading mistakes come from misreading the market, choosing the wrong market to trade in, choosing the wrong strategy for trading, or not entering, managing, and exiting trades in an efficient and profitable manner such as we teach day traders at DayTradeSafe.

Common Day Trading Mistakes

There are several common day trading mistakes. At the top of the list is not having a plan or in the case of seasoned traders not following their plan. Such plans include stop losses, careful management of trading capital, and a clear idea of when to exit a trade with profits or to cut losses. Sticking with a solid plan helps prevent chasing trades that are not working out as expected and are bit by bit generating more and more loss. In the end relying on “tips” and refusing to cut mounting losses can destroy an otherwise successful day trading operation.

Beginner Day Trading Mistakes

Day trading can be very profitable. Thus it is understandable when a new day trader gets all excited about the possibilities. Unfortunately, such enthusiasm too often leads to beginner day trading mistakes. The first mistake many new day traders make is buying into current hype about a given approach, commodity future, or stock. These newbies typically get their ideas on social media where they expect someone to give them profitable advice for free. These newbies often make the second mistake as well which is throwing good money after bad when their trades lose money and they believe social media instead of their own experience. At DayTradeSafe we help newbies avoid these perils as we turn out benchmarked professional day traders.

Biggest Day Trading Mistakes

There are day trading mistakes that slowly but surely eat away at your profits but the biggest day trading mistakes are those that over just a few minutes or hours destroy all that you have built in your day trading business. Not hedging your strategies and not routinely setting up stop loss strategies are mistakes that often do cause any harm as the market is heading your way. But when market forces reverse in a hurry the lack of these protective features become the biggest day trading mistakes of all.

How to Avoid Day Trading Mistakes

Make a day trading plan, test and retest your day trading plan, and always follow your day trading plan are generally how to avoid day trading mistakes. But the best way to not only stay out of trouble but to generate reliable profits day trading is to learn the necessary skills before you start risking your money day trading. At a minimum one should simulation trade until profits are routine but the better choice is to learn how to make rules-based trades with professionally managed entries and exits from DayTradeSafe.

Forex Day Trading Mistakes

Most of the mistakes made by Forex day traders apply to any and all markets but there are some that are unique to the Forex arena. Because currency pair fluctuations are commonly quite small throughout the day traders will commonly leverage their trading capital by borrowing from a broker and they will all too often put more than one percent of their trading capital in any given trade. The problem inherent in risking too much capital on any given trade is that from time to time a trade unexpectedly goes bad and can destroy a year of profits in a heartbeat. Management of trading capital is paramount when trading currencies.

Crypto Day Trading Mistakes

Some will say that the first crypto day trading mistake is trading cryptocurrencies in the first place. All of the approaches and strategies that apply to commodities, stocks, and Forex apply to crypto day trading as well. A unique factor in crypto is that there are no real fundamentals on which crypto values are based. Thus, there is always the risk as seen in the last year of crypto values falling off the cliff with no clear warning. The other concern is that this is an unregulated arena where practices like wash trading are not illegal. Thus, when you rely on Bitcoin trading volume as a technical indicator you will be misled.

Futures Day Trading Mistakes

Futures markets for commodities like corn and soybeans may not move much until they do. Thus it can be easy to get bored and not pay attention to the market or trades in progress. Common futures day trading mistakes include not staying focused on your overall plan, not routinely buying stops to protect your trades, and not sticking with your tried and true day trading system. Even seasoned traders can fall prey to market hype, fear and greed. At DayTradeSafe we teach how to successfully enter, manage, and exit day trades no matter where futures markets are headed.