We are always looking for ways to make money, that is our main goal. That is why in today’s article, we will talk about the five mistakes that a beginner makes in day trading. We will show you those mistakes so you can change them for opportunities and start making money instead of losing it.
Not having a business plan
Let’s start talking about the first mistake, it is not having a trading plan, this is very important, not only because it is the most obvious rule to start trading.
99% of people do not have a business plan. What do we mean by business plan? The trading plan is basically what you want to do with your account, for example, many users want to convert 100 dollars into 50 thousand, this is a plan, other people are comfortable with trading and making 1% profit every day, all plans are actually very good, the mistake is that you don’t have one to start your day.
So, always make a plan and organize yourself before you start trading, and you will see good results!
Practice with demo accounts
Mistake number two that we are going to talk about is that a lot of people don’t like or feel like practicing on demo accounts. Most brokers offer demo accounts and this is super important because when you practice on this account you will be able to see how your broker works, and at the same time you can practice a variety of strategies.
The good thing about this is that these accounts are free. So, practice as much as you can on a demo account and once you feel ready, switch to a real account and start making money!
Do not risk more than 2% of your balance
Mistake number three and we’ll call it scaling trade size, we’re talking about a lot of people who start trading let’s say 100 bucks a trade and they win a trade and now they have 200 bucks, so then they want to go with that 200 again for another trade. This is where the error is, what you have to do is operate or negotiate with a certain percentage of your commercial balance, for example, it will not have to be more than 2%, if your balance is 100 dollars, 2% will only be 2 dollars so you can operate.
This is very important, so you do not end up losing all your investment.
Focus on the percentage of your earnings!
Error number four is focused on profit and loss instead of percentage.
Many people see our content and have been able to see that on some platforms we have come to have up to 50 thousand dollars in the account, that is where the difference is, in the amount of money we obtain as profit. An example 2000 dollars, many people see the amount of money they earn, but never the percentage.
We have sessions where we have won $3,000, but our actual balance was $60,000, so we practically earned 5%. So focus on keeping a balance and increasing the percentage instead of the money.
Practice a single strategy
Now we will talk about the fifth mistake, and this one is about trying many strategies. You have to focus on a single strategy, if you don’t, you won’t master it and as a consequence you will never make money.
Focus well, in just one strategy, master it and then you will start generating a lot of money.
What can we conclude?
As we have seen in the article, there are a variety of mistakes that you can make in day trading.
So, please remember, have a plan for your trading day, support yourself with demo accounts, and do not practice many strategies, focus on master just one strategy and then you’ll see how your results change!