THREE COMMON MISTAKES A BEGINNER DAY TRADER MAKES IN DAY TRADING

To be fortunate in day trading one needs to have plenty of time and endeavour to make a fresh start to make it turn out successful, a close thought to establish a plan before becoming an experienced day trader might also help. Like every other new beginner, a person is always at a loss for what to do and what not to do. Basically, it is very difficult to figure out a mistake when an individual is new to the trading world, which ultimately causes a needless loss of money at some point. The top three mistakes made by a newbie in day trading are:

1. Not having your own regulations:
The trading rules that one should make include what setups are going to be traded, criteria for entry and how to manage when you are in a live
trade.
● Setup:
‘Wedge pattern’ always makes it easier to get profitable trading chances when the trend line breaks, while the reversal of trend to the opposite direction is shown by ‘head and shoulders pattern’. As evident, these two methods are feasible to add in the rules, when it comes to trading. Anyhow, when the market is moving fastly, taking no notice of your own rules is possible, once the market develops a downtrend, it is likely that it will reverse to an uptrend, you will end up breaching your own rule for setup and trade something that you don't understand. As perceptible, one should never make such a mistake.
● Entry:
Making rules for the order entry should
include taking the order when you see
defined signal bars in the chart which means you have a particular requirement on the bar body percentage of solid part and the size of tails on each end, in the meantime, you are never supposed to trace a trade because that will consequently increase your stop loss, your strategy is to take a profit when market moves up the same distance as your stop loss from your entry level, this way your target on strategy will be reached but you will never be able to make it on trade. Instead, you get a stop loss because you did not follow your own policies that didn't allow you to chase a trade.
● Management:
This rule comes in handy when the trade doesn't go the way it is expected. If your trade setup is still valid you need to stick to your strategy and exit your position only at a stop loss or a profit goal, but if the setup changes, you need to leave your position right away even if you have a loss. Simply, if the market goes up and at some point it comes back for a pullback even before you reach your profit goal you will surely feel pressurised as it is likely that it will hit your stop loss.

Consequently, you will exit your position but the moment you close it, the market goes up as planned initially , you will absolutely feel unfortunate enough for not holding on to it for a longer time. The conclusion of this rule is to hold tight to your setup if it is still valid and survive the downfall.

2. Not doing homework regularly:
Giving attention to day trading on a regular basis as homework might help to build a great understanding of it. It can help to be inside of the market to become a disciplined and planned performer in day trading. Some beginners don't find it necessary to look at the previous day and they jump to the coming day directly. These types of people have no idea of what to expect the next day and keep making the same mistakes every other day. Like every other homework, this one also requires two basic methods:
● Daily synopsis:
Even if you have not traded the whole day, you should always keep a count of your profit and loss every single day, this can contain information like ticks by contract, ticker and setup. You also need to go through the chart of changing patterns(statistics) , strength of the market and daily volatility.
● Preparing for the next day:
Since everyday’s trading sessions are
somehow dependent on each other making connections with historical market movement, keeping a record of high and lows of the previous day, week and month will help to support your trading by giving a rough idea of where the market will go in the upcoming days. You should also review the time of economic events, because before a particular event market will move slowly and if one makes a trade before the event, it is possible that the person will experience a loss and the profit target will never be met.

3. Not profitable in paper account:
It is always normal to get excited to try out the strategy made by a beginner himself and become successful immediately but enough practice and making profit in paper accounts are difficult before shifting to the live account. Paper and live accounts are totally different in pressure levels.
Three things that a person should do in paper account before moving to the live account are:
● Practice:
Practising for a couple of weeks is not
sufficient as the market moves as a cycle of a few weeks to months.
● Calculate the profit:
Many of the beginners decide to go full time on this job, expecting to live through the profits they will make in day trading, so it is always better to calculate the profits and loss data, it can provide you an idea on whether you can or not live on it.
● Follow the rules:
Following your regulations should be at the top priorities of your trading before going to a live account, because trading something that you don't understand will make you lose an ample amount of money.
Besides being in live account, one must revisit the paper account to discover new strategies or to overcome a constant loss.