Are you learning today trade, but always seems like you're taking one step forward, but two steps back, you might be making these five deadly trading mistakes learning to day. Trade is probably one of the hardest things I've ever done. What, besides, learning to drive a Lamborghini and there's a huge learning curve involved when it comes to day trading, from building up the discipline to wake up few hours before the market even opens to analyzing news and headlines and reading SEC filings and spending? Hundreds of hours of screen time observing the market, so this might be an unpopular opinion. Learning to day trade requires a little bit more work just just a little bit more than falling chatroom alerts to buy and sell some DVDs and some motivational Lamborghini posts on Instagram.

I've been trading for more than six years now, and I've made literally every single mistake in the book, because the stock market is unforgiving. The moment I think I know it all it's the moments that I will get humbled. Hence the name of the channel humbled trader. So in this video we'll be talking about the top five day trading mistakes beginners make my personal story with all those mistakes and how you can identify and fix them in order to avoid blowing up your small account as long as you remember to tap the like Button for profitable twenty twenty, the number one trading mistake, beginners make is not having a trading plan.

There's a saying that goes something like. If you fail to plan, then you're planning to fail and that couldn't be any more true for day trading, and I was very guilty of this. When I first started, I remember seeing some low flow to penny stock running from $ 4 to $ 6 within minutes. I felt so excited my heart's beating fast, I'm sweating on my forehead.

This is the moment for me to Bank and my brains telling myself. I must buy now, or else our mrs. right buy now and ask questions later well, what's a while I'll get lucky make a buck or two here and there, but oh it really takes is one instance why buy at the very top and right after I buy The stock completely plunges and I lose 10 %, 50 % of my entire account. Does that sound kind of familiar I've done it many times in the past.

Most of us have and that's what we call formal fear of missing out before jumping into a trade. We must make a trading plan. I spend about one half to two hours each morning before the market opens planning for all my trades. That's right! You cannot just jump out of bed 10 minutes before the market opens and expect it to rain Lamborghinis.

Yes, it takes time, but that's exactly the point. Creating a trading plan will help you avoid FOMO by taking the time to write down your thesis, risk reward potential entries and exits you're already setting yourself up for a much higher probability of success. Your trading plan should at least include your bias, long or short all the important levels, over and under your exit plans and your stop losses if you're wrong. Yes, that's right.

Part of the trading plan should be planning for your loss, especially in this volatile market, because it's only after you plant and calculated your losses that you can keep them in control planning for your trades is really 90 % of the work, and once the market opens, I spend the rest of the 10 % of the time executing my plans and it's just as important to follow your plans as it is to make one, because if you don't follow your exit plans, it can easily lead to the next trading. Mistake. Mistake number two: the beginner traders make over trading because most new traders focus on trading their profits and P & L. Instead of trading their plans and following the charts imagine this, you made a few good trades on a day so far $ 100.

Here $ 400. Here and on the screen corner, you see a nice $ 890 PML you're feeling pretty good so far, but you really want to hit that nice round number of $ 1,000. So, instead of taking a break during the middle of the day, you keep on trading and you start entering trades. That's perhaps not your a plus setup and you start losing that $ 190 went down to seven hundred dollars and then four hundred dollars.

This is where you start to getting emotional and extremely frustrated, because not only are you not hitting a nice number of 1000 dollars on the day, you just went down even lower from the eight hundred ninety dollars profit half an hour ago over trading leads to emotional Trading which leads to revenge trading. This is where you keep on going back to the same stocks that you just lost on in attempting to get that money back well, I think we all know how the story ends when the market bell rings at four o'clock. Eastern Time, you've gone down from being up eight hundred ninety dollars on the day to being down read three hundred on the day and that my friends is the story of the first year of my trading journey. I knew how to make money trading in the market, but I could not keep it because I let greed and emotions get in the way by over trading.

So here's a few things you can do to avoid over trading. First of all follow your stop-loss no excuses. If you plan on getting out of that trade at $ 8, do it? Yes, I know it sucks to take a loss, but it's a planned loss. That's within your risk profile as part of your trading plan.

Next: walk away from your trading computer and take a break generally speaking from around 11:00 a.m. to 2:00 p.m. market time. These are usually the time where stocks are consolidating in a tight range with low trading volume.

Focusing your trading at the open and power hour will allow you to take the meat of the move and not wasting your precious time and money and setups that won't be profitable due to lower volume. Most importantly, when you're feeling distressed emotional, it's time to shut down and walk away from your computer, most emotional trading leads to even bigger losses. I know because I've done that many times in the past before so when you're feeling that emotions start to kick in. It's time to take a break, the market will always be back tomorrow and the next day.

Now, let's move on to the third mistake: beginner traders make - and that is not smashing the light button at the bottom of this video. Not only do you get no BS day trading content here on the channel, you also get a free subscription of bad jokes, beat that Netflix and Disney. The third mistake, beginner traders make, is not spending enough time on paper trading before going in life. Okay, I get it.

People want to make fast money. I was guilty of that myself. Instead of spending one or two months in simulator trading and learning all the mechanics I jumped right in with live trading accounts and my heart earned money, and not just say I wish I hadn't done that paper trading, which is trading with simulated money and life charts, Allows you to learn to plan for your trades like we talked about earlier and getting familiar with all the technicalities and broker interface, there's really nothing more frustrating than accidentally selling the entire position when you meant to scale out or not knowing how to change your long Orders to a short but hey, like I said before, I've made every single mistake in the book. So that's why I'm recommending all the beginner traders, starting out to use paper trading and you got ta, be disciplined and treat your paper trading accounts as if it's real money.

That means, if you're, actually gon na, be funding a live account with only $ 5,000. Then paper trade with $ 5,000, not the default $ 1,000,000 paper trading, account that many brokers allow you to have not only will paper. Allow you to get used to your broker interface. It will also allow you to get a screen time that you need in order to learn price action.

We've all seen these charts templates out there with these beautiful patterns that make trading seem so simple, but in all honesty, memorizing patterns is owing hindsight. The only real time indicator is price action watching hobby screen and read Kindle steaks develop in real time and observing how the stock reacts to various news. These are the kind of experience that takes time in front of the screen to pick up and all the traders have to learn at their own pace day trading. Beginner mistake: number four scaling up your size too quickly.

I remember how happy I was after I started. Making around $ 100 each day hundred dollars a day, that's five hundred dollars a week, not bad for a couple hours of work and heading out to my real job, small games, add up and remember. I was still making pretty good income from my full-time job and then one day I had this brilliant idea. What, if I just add a zero at the end of my position, sighs if I just use ten times my normal size, then, instead of just a hundred dollars I'll make a thousand dollars a day and five days a week, there'll be five thousand dollars Wow.

What a genius plan, let's just say, that very genius plan of mine didn't really work out that well. Not only did I lose the small one hundred dollar winds, I built up the last few weeks. I completely blew up my account because you see I did not take into consideration all the emotional stress that comes with scaling up so quickly if my risk was originally losing $ 50 in order to make a hundred dollars now, my new risk is five hundred dollars In order to make a thousand - and while I was ready to make that five thousand dollars per week goal, I was not emotionally ready to handle the $ 2,000 $ 3,000 losses when you scale up your position size to quickly. That will lead to emotional trading.

So if you are thinking of scaling up, that's great good for you you're on the right track, but make sure you're scaling up slowly, give it a couple of weeks in couple of months before adding quarter sizes and then doubling your size eventually take it slow and Allow yourself to mentally prepare for the possible bigger, proportional losses. Mistake number five: the beginner traders make following chatroom alerts. Yes, I know I saved the best for last. Yes, I have mentioned before that.

I think it's extremely beneficial to trade, with a like-minded community of traders and receive feedback and trade ideas, but following chatroom alerts to buy and sell that's a completely different story. I think, following others will put you months, if not years, behind your journey to become a consistently profitable day trader and here's. Why so, first of all, most of these chat rooms that give you alerts, they tell you to buy and sell without breaking down why they are doing so. This creates followers which unknown a sheep who blindly buys everything the moderator tells them to buy and sell, and guess what most of these sheep lose money, because they have no idea why they bought the stock in the first place.

So when the stock just drops a little bit, they all hit the bids to get out and market order out for a huge loss. I'm not saying you can never make any money following chatroom alerts, maybe if you're fast enough with these hotkeys and you have no internet latency but in a long run following chatroom alerts, will drain your account, especially if you're in these low flow to penny stock chat Rooms that have thousands of followers - this is what we call potential chat, room pumps so picture this in your head. The moderator start scooping up shares of these low floats low volume penny stocks. Then he alerts thousands of his followers to buy and guess what? Because these stocks are low, volume and low floats the stock, actually surges 20 % 50 % with seconds, seeing that the price has surged, the moderator tells everyone to sell after he has already locked in for a fat profit, and you know what happens next.

All the thousands of followers sell at the same time - and like I mentioned before, if you are lucky sheep, with really fast internet connection, you probably made some money, but the majority of those followers will be left stuck at the very top and holding the bag. I'm very sad and embarrassed to say that in my first year of trading I probably tried out five to six of these penny stock chat rooms and I've seen all these instances firsthand. I was a sheep too, and I was left holding so many bags and let me tell you they are not the kind of bags that people actually want, not the Louis Vuitton and definitely not the Gucci. But looking back, I felt like I deserved those losses I bought into the dream.

Now I can make millions of dollars just by following what other people are doing. Trading is not easy, but it could be learned if you're willing to put in the time in the work slowly like I mentioned in so many of my previous videos, it all comes down to sacrifices. Do you want this bad enough? Maybe it means partying, less and weekends, going out only once or twice a week and only getting six hours of sleep and basically just not have a life. Let me know what you think about these top five beginner trader mistakes I mentioned in the video and have you done any of these yourself? As always, if this video really helped you out, please remember to drop a like at the bottom of the video.

I'd really appreciate you, my friends, thank you guys so much for watching. As always, I'm the humble trader and I'll see you guys next week. Hey guys thanks for watching. I hope you enjoy the video and the bad jokes.

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