Day Stock Trader - 5 common mistakes

Many people are attracted to the idea of being a day stock trader.They hear of the money that people make.  They like the idea of working from home.  They like being able to work using a computer and the internet. The possibility of being a successful day stock trader today is greater than ever. 

Discover a revolutionary system for day stock traders

Then why are only about 15% who try it successful? The reasons are many, but can be distilled down into 5 general categories.

1. Lack of Knowledge
It is critical that you educate yourself about the stock market.  There are many free resources online and you will need to aquaint yourself with the terminology used, how the markets work, order types, symbols used how to read charts, etc. This is basic stuff, but don't neglect it.

2. Lack of Tools
You will need a good chart service - either a free one like Yahoo Finance, or a paid one like Telechart 2000, or one of the many others.  Learn how to use them and interpet what they tell you.  Charts will tell you when stocks form patterns that indicate their likely behaviour.

3. Lack of Discipline
You will need a solid trading plan.  Decide what you will trade, how you will trade, what you will invest in a trade, etc.  Basically, this is a set of trading rules that you develop for yourself that will guide each and every trade you make.  Failure to do this will lead to you randomly trading, trying this or that but never focusing on a successful strategy. Try one thing at a time, trade it on paper, then take it live.  If it works, add it to your trade plan, if not - move on.

4. Lack of Support
Being a day stock trader can be a lonely profession. Seek out and find local support groups where you can meet and exchange ideas.  It is important to get out of your house and interact with real live people who are doing what you are doing.  Sometimes someone elses' knowledge will be exactly what you need to see a problem that has been hindering your success, a problem that you may not even be aware of.

5. Emotional Trading
This is the toughest nut to crack for a new trader.  When you have money on the line, it is hard to stay emotionally detached from your trades.  Staying in a trade too long, hoping it will turn profitable is a common mistake. Exiting too soon for fear of loss is another.  There are many books on the subject of trading emotions.  One popular one is "Trading In The Zone" by Mark Douglas

Being a day stock trader can be a rewarding and lucrative career choice, but it requires education, planning, and discipline to succeed at it. Avoiding these common mistakes will go a long way towards eliminating your frustration and maximizing your enjoyment of trading.

Learn how to day stock trade like a pro!

Learn about an automatic stock trading system for day stock traders