Let's talk about the BIGGEST day trading mistakes beginners make. Many of these common mistakes are from my own experiences. Sadly I have lost A LOT money through these struggles, but hopefully by sharing this video, most of you won't have to.

 

 

Top 5 Day Trading Beginner Mistakes:

 

1. Not having a trading plan:

 

Many beginners jump into hot stock due to FOMO without knowing why they were buying, why the stock was running, nor their risk reward and exit plan. This is also known as chasing and will easily lead the trader to buying the VERY TOP.

 

 

2. Over trading:

 

Instead of trading according to their plans and the chart in front of them, many traders are trading their PnL (profit and loss). They have a certain monetary goal as their realized profit. Maybe it's a round number of $100, $1000, or $10000. This will lead to over trading, then emotional trading, and finally revenge trading. I have blown up my trading account this way before due to emotional trader. Beginners, learn to WALK AWAY when there's no trade and take a break to regroup when feeling emotional!

 

 

3. Not paper trading:

 

Paper trading is basically risk free market screen time. Many day trading beginners want to jump in and immediately start making millions. Well, before doing so you need to learn your broker interface, how each stock reacts, and practice your technical analysis on LIVE charts. Paper trading will allow you to gain market screen time and prepare your mind emotionally for the ups and downs of stock trading.

 

 

4. Scaling up share size too quickly:

 

When I started making $100 a day, I was so excited. So much so I wanted to jump into making $1000. I quickly learned that sizing up x10 means escalating the emotions as well. Psychologically, I was not ready for x10 the stress. It's very important to take your time when sizing up.

 

 

5. Following chat room alerts! 

 

This is perhaps the DEADLIEST trading mistake I see beginners do. I'm guilty of this myself. You join different chat rooms, follow the alerts to buy and sell, yet you seem to be always too slow to sell and always LOSE MONEY. Well, following alerts will never make you a profitable trader. Many of these trading chat rooms are indeed SCAMS that pump the stock up and dump the shares on unsuspecting traders.