Day trading is an attractive option to make money quickly in stock markets. But, some ridiculous things you must avoid in day trading. If you are successful in controlling day trading mistakes then money making is not a difficult task.
However, if you continue to make these mistakes you are likely to take away from trading itself. Day traders often ignore these simple & common things while trading but they can adversely affect your returns.
They are also known to increase risk to your hard earned money. You are advised to avoid these silly & ridiculous things by adopting a good strategy to beat your competitors. Here are 15 ridiculous day trading mistakes you must avoid:
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(1) Borrowed Money
It is one of the first things you must avoid in day trading. Several day traders prefer to use borrowed money to buy & sell stocks for intraday.
You can borrow money either from your friends, relatives, moneylenders, or even from your brokerage house. Money borrowed from brokerage house is also referred as margin money.
Your borrowed money can help you to gain enough profits faster and/or in larger quantities from your trades. But, it can also increase your chances to lose money fast due to wrong trade.
Sometimes, even a single decline in the value of stocks purchased may ruin your entire capital. Therefore, you need to be extra smart to deal with stocks in day trading.
It is always better to use your surplus funds for intraday instead of using borrowed money from someone else.
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