5 mistakes that can destroy your account

The market is driving by fear and hope. Here are 5 of the most common mistakes that many day traders do. 1. Lack of plan – „The most...

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finance tipsThe market is driving by fear and hope. Here are 5 of the most common mistakes that many day traders do.

1. Lack of plan „The most common mistake that traders make is entering the trade without a good plan,“ said Tony Turner, author of A Beginner’s Guide to Day Trading Online. Nearly every error is often due to trade without a plan.

2. Misuse Margin- If there is something that can destroy a trader‘s account daily, it’s margin. This is when you take loan from the broker to buy securities. If used correctly, the margin is a valuable tool that can increase profits and give retailers a place to breathe.

3. Chasing dealsWhen we see that a tool goes higher and higher, we all want to join the party, „says Turner. „The problem is that experienced traders go through the back door, while new traders arrive.“

4. Misunderstanding the market and pending orders– Now that the spreads are very narrow, limit orders make no sense,“ says Deron Wagner, founder and head trader of Morpheus Trading Group. „You can not miss fast-moving action, just to save a few cents,“ says the specialist.

„Сега, след като спредовете са много тесни, лимитираните поръчки нямат никакъв смисъл“, казва Дерън Вагнер, основател и главен трейдър на Morpheus Trading Group. „Може да пропуснете бързо движеща се акция, само за да запазите няколко цента“, допълва още специалистът.

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