There is no such thing as beginner's luck in day trading. While a few may have some lucky trading days, relying solely on it will not make you successful in the long run. Here are some common trading mistakes that beginners (and sometimes experts!) commit, and must therefore be avoided.
The first mistake that traders should not commit is to use all of his money for trading. This is something that no trader must do. In trading, use money that you can dispose of, not your lifetime savings or a student loan. Experts will tell you that "scared money" will never gain, maybe because of your own fears and anxieties as you go through trading with it.
So before you get hooked or even start day trading, make sure to set aside funds for payments that you need to make like rent, mortgage, and other loan payments. That way, in case you fail, you will not lose all your money and have to rely on welfare.
Another common mistake is to trade with one's emotions. Some traders love a specific stock so much that he doesn't let it go even when he should. This could result in more losses.
Because they trade with their emotions, they easily feel down and discouraged if they lose a few hundred. The following trading day, they let their disappointment interfere with their trading strategy, so they are bound by fear or uncertainty in their decisions.
Others, after a few gains, feel ecstatic and trade like hell. They start to make predictions, not based on studies or analysis but on how they want their investments to go. As a result, they lose more money than their actual profit. This is another common mistake for traders.
It is therefore important to stay neutral at all times. Be objective as you make choices. More importantly, stick to the plan that you made.
Another mistake is to use advanced software scanners. While this may be useful for an expert trader, it can pose problems for beginners, as they are difficult to operate and understand. Too much information can complicate things, so always remember to keep things simple while you are still starting.
People commit mistakes in order for them and for others to learn from them. Let these past mistakes serve as lessons for traders at present. Remember that these are only a few of them. There are other mistakes that can be made, so be careful in the choices that you make.