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  • What Is The Basic Thing We Should Remember To Avoid Risk In Day Trading In Stock Market?

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What Is The Basic Thing We Should Remember To Avoid Risk In Day Trading In Stock Market?

Last Updated: Dec - 19- 2019



Trading is like a profession, It just takes a day’s time to open a trading account and transfer funds into it, but unless you are committed, focused, disciplined and ready to spend time learning, you should give it a thought before entering or continuing trading if you have already started

The basic thing we should remember to avoid risk in day trading is overtrade. I believe this is the biggest mistake made especially by beginner/novice traders. Because markets don’t move in a linear fashion, traders mistake a small retracement for a trend change. With every such small illusive move, traders tend to change their stand and convert short to long and vice versa very frequently and overtrade.

How do we avoid overtrading? Start working on larger time frames, move to hourly charts rather than minute charts, you will get lesser signals, wider stops and will remove all small intermittent noise.

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