Re: Beginner mistakes and how to avoid them

* Over trading-- it's very important for a day trader to limit the number of trade he/she took in a day.

This is one of the reasons I was never profitable in trading. You will also get the impression that trading is simple as long as the setup entry is working. So, instead of being profitable, because you overtrade, the market recoups your earnings, and you may even lose money.

Most people can't monitor themselves when they trade, which is why they have many winning transactions but a negative port at the end of the month.

Some people believe if they overtrade that is when they will make more profits but it is unfortunate that trading is not like that, if one really wants to make profit in trading greed(overtrade) should never be considered. This is mistake taken by some traders has really lose good amount of money in trading, it is important to have limits in trading, and not to force profit from trading by overtrading . This is one of the common risk in trading that needs to be avoided.

There is a reason why traders overtrade; not only are they influenced by their trading performance, but they may make trading their primary source of income, which is not ideal. So, if his daily earnings are insufficient, he will force trade even though the market cannot be read. Consider that even if you do not force trade, you will incur losses; how much more if you do. Forcing trade is not recommended. To prevent being forced to trade, do not make trading as your primary source of income; this will improve the likelihood of your setup materializing.