A large number of day traders incurs heavy losses in the first few weeks of their trading career and quit day trading after losing all their money. Why they lose all their money and quit trading? It is not because they are in efficient. In fact, most traders have an above average intelligence and they are above than average in most categories such as education and income, So Why do they fail? The reason is lack of trading education!

A large number of new day traders think that there is easy and quick money in day trading. They think that they can buy at bottoms and sell at tops very easily. They think that since they are successful in their earlier activities they can trade consistently with 90% accuracy. They think that they can invest small amount and trade for large amounts to earn big profits by utilizing multiple exposure on their margin amount and fail to understand the effect of draw down on their trading capital because of too much exposure. They fail to understand that Day trading is a highly challenging business, which rewards only disciplined traders. Most importantly, they fail to understand that they should learn day trading before starting day trading!

If you want to earn consistent profits in day trading, you should thoroughly educate yourself in all aspects of day trading. You should educate yourself on the correct psychological approach to the market. You should educate yourself in the correct money management and risk management techniques relative to your trading capital or account size. You should educate yourself in the correct entry and exit methods in your stock selection techniques.

It is impossible for any Trader to buy at the low and to sell at the Top. You have to make profits in between the low and top points by using some techniques. People come to market thinking that it is an place to make quick money, that’s true to a extent but market rewards to those only who have discipline and who have patience.

 

Trading is not gambling as many assume it is a business which done properly can result into huge profits. Education of self is very important in whichever field you go. So one should be  always ready to learn the tricks of the trade before getting into it.

 

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