There are several day trading mistakes that the ETF traders often make. Some of these mistakes can cause a severe problem in the business by collapsing the entire investment, while some others are minor. There are a few common mistakes that are often neglected or overlooked, which can ruin the whole trading career. Among these common mistakes, ignoring stop-loss order, poor risk management technique, lack of preparation, prioritizing emotions, overtrading are very serious as any of these mistakes can make you suffer during a major market crash.

Common day trading mistakes

There are some common day trading mistakes that beginners make most of the time due to lack of proper knowledge about trading and the movement of the stock market.

1. Not using the stop loss order and use a bigger position

Many newbie retailers neglect this essential factor while entering a trade. They don’t set up the stop-loss limit to reduce their casualties. Setting or pre-determining the stop-loss order is a kind of risk management or money management technique. A Stop-loss order will automatically close a trade when the market’s price starts moving against the trader’s luck. Once the price crosses the pre-determined limit, the trade closes.

Another common mistake that a retailer makes is to reduce the size of the trade until he can make profits consistently. You can build up your confidence level by using smaller trade sizes. Utilizing a more prominent position means that you can easily make a more significant profit if the market moves in your favor. Still, if the market moves against your luck, you may face severe consequences.

2. Not taking sufficient preparation

Many novice traders in Hong Kong jump to trade without even making proper preparations. It is one of the most common day trading mistakes. Expert retailers suggest the beginners take necessary preparations before entering a trade. Even if you feel mentally or physically disturbed, don’t even think about trading because any disturbances will affect you. To trade ETFs, you must take proper precaution to protect the capital. You can’t earn big amount of money by using high leverage or with the aggressive steps. Always trade with logical reasons to avoid big losses.

Trading is like a profession to some people, and experienced businessmen regard it as an essential business. Before you open a trading account in the Forex market, make sure that you have built the confidence level and use a demo account to enhance your business skills and knowledge. If you are confused about your skills, don’t forget to check the trading journal, which will show your weaknesses and strengths.

3. No place for emotions

Emotions become a real culprit when it is about the trading field. Many new retailers lose all their capital by making decisions based on their feelings. Human psychology fluctuates according to any situation. The investor can be sad, happy, or can be anxious. Before entering a trade, make sure that you are psychologically fit and robust. Nobody is forcing you to come into a business.

Another psychological problem is fear, which inhibits the retailer from grabbing even a potential trade. Fear appears when he loses a series of trades in a row. Remember that there is nothing to hurry into this market. You should take your time and go with the flow of the market.

4. Risk or money management techniques

Retailers always think that it is unnecessary to adopt a money management technique, which helps the trader be acquainted with some technical terms of the Forex trading like a risk to reward ratio, support and resistance level, and so on. When developing a trading plan, the experts recommend incorporating money management techniques in the business strategy so that a newbie investor can minimize his financial loss. Neglecting to risk management is another day trading mistakes that the retailers make.


These are the four day trading mistakes that the retailers often make before entering a trade.