Topic: What are the miscalculations in day trading

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    danydebrown
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    You already know that Forex market has different types of trading methods. You can pick yours as per your need. If you want to day trade you should know the slippages that you might face. The traders in the United Kingdom are completely mindful about the slippages in day trading, so they could trade easily. If you are trading without much experience and education it is important to be focused on the slippages in trading. Actually, you should understand something i.e. there are trade practices which should not be used constantly. But there are naïve traders who use it regularly and end up in a loss. If you try to avoid these slippages in trading you will be able to trade better than any other traders. These slippages are common among naïve traders because they tend to ignore the crucial tips in trading. However, if you keep on repeating these mistakes, becoming a professional would always be a fantasy.

    Setting unrealistic goal
    Those who are losing money always have unrealistic goals in the market. They try to change their lives within a very short period of time. But trading is not all easy. You have to understand the three major elements of the market to become a full-time trader. Set realistic profit in this market and this will help you to follow the conservative trading strategy. Stop trading against the market trend. Focus on your drawdown percentage and eliminate the unnecessary factors of the market. Start working with the key ingredients to becoming a successful trader in the complex trading industry.

    Averaging Down
    Most traders have the habit to lose balance when averaging down. Although this is not an intended behavior, most traders eventually end up making this mistake. You should note that there are many issues related to averaging down. You may think through demo trading account you will manage the situation, you will certainly not. Even if you demo trade when you opt for the live account things may look different and you may eventually repeat the mistake. The major issue is when holding back the losing position, it cost money and time. The time and money that you would be sacrificing for this can be utilized in something may better. You can try to find a better position to be traded. You shouldn’t forget the lost capital you would need a higher return to patch up the lost capital. If you lose half of the capital, you would have to earn twice the amount you lost. You should know that averaging down will lead to losses. If you are a day trader, you should be concerned about this factor since it is quite sensitive. In short time frames, the traders should make careful decisions based on the market movement.

    Planning ahead of the news
    All the naïve and professional traders know that news has the ability to influence the market movement, yet direction is unstable. Even if a trader is confident about the news announcement it will be impossible to make the right decision. The market may not react as expected, so it will leave the traders offended. There are additional figures, indications and much more provided by the news that may seem absurd for the market movements. There are simple factors that may directly influence the market. However, the traders have higher risks for their success when they plan ahead the news announcements.

    Planning after the news
    Once the news hit the market there can be an aggressive move in the market. It may look as if it is easy to grab some money at that time but are you 100% sure? If you are not prepared and if you don’t have a proper plan with relevant strategies, it could be one of the devastating time in the market. Being a beginner, you should be familiar with the market to make the right decision.

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