If I am asked why 86% intraday trader lose money in trading, I would say that these are the 8 fundamental mistakes which an intraday trader usually do. If you are also a trader then you may also have done some of these mistakes. Let's discuss all the them one-by-one,
Taking trade just after the market opening
When a trader start to enjoy trading, then he starts trading for fun and not for profit, and such traders start trading as soon as the market open, they just have to trade, they have to remain in the trade.If you also make such a mistake, if your first trade is done within 10 minutes of market opening, then first of all you have to fix it, you do not have to take position till you get a high probability trade.
"A professional trader waits for a high probability trade, for them not trading is also a trading".
Over trading-taking 5-6 trade in one day
Taking five to six trade in one trading session .If you lost first trade then do another trade to cover it. By doing this, even if you come to profit, you still live in loss due to brokerage.It is just like going in circle.If you do this then you will not be able to book your profitable trade also.Whereas an experience trader hardly take more than two trade in a single trading session.
Over involvement in trade-emotional attachment
When you take a trade and you start to see every move, you see every candle of one minute and five minutes, then you are emotionally attached,if you have been emotionally attached to the trade, then you will make mistakes like trade reversals. we all know market have a vibe of its own it does not move straight up actually it move like a snake.
Over leverage- to an small account
Over leverage is a reason that your account becomes zero. The broker gives you leverage so that it gets more volume, now you have to decide whether you will give more brokerage or you like to protect your capital.
Money management- risk to reward
You do everything, but if you do not do your money management then everything is useless because trading is a game of possibilities when all the things are against you, then only money management help you.
Absence of trading plan
If you are trading, then you should know which stock you have to take and which one to leave. You should have a checklist, a set of conditions so that you get to know why you are buying this stock. When you do this, then you will know where you have done the mistake and try to update your plan to make it more accurate.
Taking trade against the trend
In the stock market, your best friend is the trend, but when you start trading in the opposite of the trend, then your biggest enemy is also the trend but the question is why do people do this? So the answer is when they feel that ,this stock has fallen so much, now it will not fall more than this and then they try to trade the opposite of the trend and end up with a huge loss.
Panic buying and selling
One major difference between an experienced trader and a new trader is that of Patience.Most of the new traders close their trade manually, they do not wait for stop-loss and target.The reason behind is they see every small move and if any move comes against their trade they get panic and close the trade, due to which the trade in which they could have profited also missed by them.
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