Over 95% losses money from Stock Market, below is the list of 7 common mistakes immature traders make and lose money.
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Lack of proper planning: Intraday traders often enter trades without a clear plan or strategy, leading to impulsive decisions and poor risk management.
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Overtrading: Some traders become too eager to make a profit and enter too many trades, which can lead to overtrading and significant losses.
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Lack of discipline: Intraday traders may not adhere to their trading plan and fail to stick to their entry and exit rules, leading to emotional and impulsive decisions.
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Lack of knowledge: Traders may not have a good understanding of the markets and the securities they are trading, leading to poor decision-making.
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Not having a stop loss: Traders may fail to set stop-loss orders, which can lead to large losses if the market moves against their trade.
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Not having proper risk management: Traders may not properly manage their risk by not using proper position sizing, not having proper stop losses, or not having proper risk-reward ratios.
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Not having the right mindset: Intraday trading can be stressful and emotionally taxing, and traders may not have the right mindset to handle the pressure and volatility. Some traders may be too optimistic or too pessimistic which can lead to poor decision making.
It's important to remember that intraday trading is a risky endeavor, and traders should be well-prepared and have a solid understanding of the markets and their own risk tolerance before entering the market. Traders should have a proper plan, risk management, and a mindset that aligns with their goals. Additionally, traders should be open to learning, testing and adjusting their strategy as they gain more experience.
