A constant change of strategy can be a serious mistake when day trading. Does your strategy not bring immediate success? If not, try the next.
Maybe the next does not work out either? So, go on to the next idea. Investors will not earn money in the long run if they don’t switch up their strategies.
This is not to say that individuals should stick to bad strategies forever. Evaluate your trading in an impartial way, optimize said trading plan and, if necessary, take a break to revise this plan. Here are some other things to keep in mind.
Ignore external events
This rule is simple to follow, but very few people implement it. With proper preparation, this error can be easily avoided. An example using Forex Trading: Every first Friday of the month, the figures for the US labor market are published at the same time, the so-called “Non-Farm Payrolls” (NRP).
These often have a very strong influence on the behavior of currencies – jumps from hundreds of pips are not uncommon. These jumps can trigger an investor’s stop limits quickly and pull good trades into the loss. If a person schedules their trading day before, the above issue will not happen. If you want to trade during these events, do so consciously and adapt your position variables to the increased risk.
The illusion of automatic wealth
In modern trading programs, people can create their own programs that automatically act. There are several ways to get to these programs. Individuals can either write it on their own or obtain it from external sources.
In advertisements, the self-writing of these programs sounds very easy, but do not be deceived, this is a highly complex activity. Just testing and assessing the performance of trading robots is anything but simple. To create a profitable robot, people should understand that it takes months or even years to design a reliable robot. And, before that, it takes longer to learn and train how to do so.
Be realistic: automatic profits without work are pure wishful thinking. Buying a robot is not a license to print money either. If that’s the case, why would the manufacturer sell it so cheap? VIsit https://www.youtube.com/user/rockwelltrading2008 for more details.