Intraday traders fail in stock market due to various reasons. Intraday trading is not a rocket science, but nearly 90% of the Intraday traders fail, because of the following 3 common mistakes they conduct while doing Intraday trading. If the Intraday traders try to avoid these mistakes, then they will be in the track of earning the consistent gains in the Stock market.
a) Lack of Stock market knowledge: It has been observed that most of the traders enter into Stock market either based on a very little knowledge about the Stock market or based on hot tips. This is not a healthy practice. Its very important for the trader to gain the knowledge about the Stock market. Without the knowledge of domestic news/updates, international markets, its not possible to earn consistent gains in Stock market. If you are newbie, then spend atleast 2 to 3 hours analyzing the markets, studying the company fundamentals etc. After doing all the above things for couple of months, then you will start understanding the market and then you can proceed doing the paper trading in order to gain the confidence. Once you start earning profits on paper trading, then you can start real trading. If you jump into trading without having a proper knowledge about the Stock market, then you will end up losing money.
b) Greed: Greed is the factor which can turn the profitable trade into the losing trade. Profit generation in Stock market totally depends upon the Stock market direction. You have to listen to the market and if you think that trading is not possible on that particular day then stay away from it. In Intraday trading it is advisable for the trader to book small profits and do multiple trades, because in Intraday trading, its very difficult to judge the Stock move. Don’t convert your profits into losses by becoming greedy.
c) Impatience: You have to be patient while doing Intraday trading. You should not panic when you incur the losses. If you become impatient, it will provoke you to take wrong decisions.
If you think that if you have any of the above factor at extreme level, then try to overcome it in order to be successful in Intraday trading. If you don’t overcome the above mistakes, then you cant earn profits from the stock market even if you take the Intraday tips from the reputed stock advisory company.