By engaging in intraday trading, you could potentially be making money within a few hours. However, contrary to popular belief, successful intraday trading is not about luck. Approach it with that mindset and you could be in for big losses. If you find your trades are generating losses more often than not, you could be doing something wrong. Here are some common intraday tips to explain why day traders lose money.
- Your decisions are ruled by emotion.
An intraday trader cannot afford to be driven by emotion. It can lead to irrational trading decisions. When things are going well, you may want to hold on and book more profits. But right then, the trend could reverse and hurt your bottom-line. Or, you may be stressed about a loss you have incurred and are overtrading aggressively to recover that loss. The ability to keep emotion at bay is a key quality of a successful day trader.
2. You have no time for research.
If you are intraday trading on the side, make sure to devote time to reading technical charts and doing data analysis. It is not just about showing up on the trading platform and executing orders. To execute winning trades, you need comprehensive knowledge of how your chosen stocks are moving. Without research, you will lack the ability to make effective trades.
3. You are wholly dependent on tips.
Don’t blindly trust intraday tips from just about any source. Not everyone has the research backing or the ability …