Daytradefeed.com has put together 5 Forex Day Trading mistakes to watch for

Day Trading can be a very profitable business, but devastating losses are common if you don’t know what you are doing.

At Daytradefeed.com, we want you to make money day trading–not loose money. Watching for these 3 forex day trading mistakes will help you achieve success.

Averaging Down

Averaging down isn’t the ideal technique for day trading.

Lots of traders end up using the averaging down technique. Averaging down is not the ideal technique, but it can be easy to slip into.

The biggest issue is that when averaging down you are holding a losing position. This means you are possibly sacrificing time and money. Day Trading is such an ever moving process, that your money could be planted in a much better situation.

Another issue with Averaging down is that to you have to get a higher percentage on return to make up for any capital lost from the initial loss. For example, if you lose of our capital, you will have to get a return of 100% to break even. Maintaining these standards in unreasonable in the long run.

Averaging down will eventually end in a inevitably lead to a large loss. Market trends can remain in place longer than you can stay liquid. It is not worth taking the risk of Averaging Down.

Positioning Trades Too Early

Day Traders have to pay close attention to the news surrounding the market. Traders will become very familiar with what news will cause the market to move. It is impossible to know in advance however, exactly which direction the market will move.

Volatility is a key factor for day traders, but which way will the market move? It is not wise to jump to conclusion before news is announced. It is not worth the risk.

After the News Hits

News can hit the markets at any time. It seems like easy money to react and take advantage, but you must have a strategy! If not, results can be every bit as devastating as they would be if you traded before the breaking news.

Day Trading should take place after a trend has been defined. Being patient will lower your risk and increase your likelyhood of effective trading.

Risking too Much

More Than 1% of Capital on Forex Trades

Big risk doesn’t always mean big return. Most traders who take big risks eventually lose big. It is a common rule that traders should only risk 1% of capitol for a single trade.

Limiting the risk percentage will help keep your portfolio on track. Sticking to the 1% rule will ensure that no single trade will break the purpose of this method is to make sure no single trade will break the budget.

Avoid being Unrealistic

It is good to work hard and set goals, however being unrealistic can lead to forex day trading mistakes. The unrealistic expectations we set for ourselves can be projected on the market. The best technique is to watch the market and see it for what it is.

The best way to see the market for what it is is to create a trading plan. Research trading plans and testing them is the best method for day trading success.

DayTradeFeed’s Method

If you are beginning to Day Trade, or if your current method is not yielding success, try us out. We’re here to help

Is Day Trading Right for Me?

We live in an age where everyone is looking to make a little extra cash on the side. It’s no wonder why so many are asking, “Is Day Trading is right for me?”

It is true that unexperienced day traders can make expensive mistakes very quickly. For many, however, day trading is a great way to add some cushion to your income.

What is Day Trading?

To know if day trading is right for you, let’s first discuss what day trading is.

Day trading involves buying and selling stocks in a short period of time. Usually about a day.

When day trading, you are not expecting to make large sums of money with each trade. Instead, with each trade the goal is to make small profits.

The goal is that these small individual profits over time will add up to larger sums.

How Does Day Trading Work?

Successful day traders treat it like a full-time job, not merely hasty trading done between business meetings or at lunch.

Practice, practice practice. Those who make consistent money from Day Trading are devoting a lot of time to their work. They rely heavily on the ever-changing stock market to earn profits.

It is better for Day Traders if the market moves up and down throughout the day regardless of which way it is moving.

When Day Trading, you will be looking for short-sell options to profit off of a falling stock or buying stocks that are trending upwards. Day traders are always looking for something to move around to make a profit.

So, Is Day Trading Right for Me?

In conclusion, only you can decide if Day Trading is Right for You.

Do you have the time to commit to it? Do you have the drive to practice and develop strategies?

A strong suggestion if interested, is opening a practice account before officially day trading. (contact us for more information on this)

This will allow you see what day trading would be like and observe potential results without a huge risk.

trading forex

Watch for these Forex Day Trading Mistakes