Practice makes perfect. And that’s especially true for potential day traders, says the author of Day Trading for Canadians For Dummies
Toronto-based writer and blogger Bryan Borzykowski tells BNN that prospective day traders need to fully understand what trading is -- it’s a lot different from investing. He advises using practice accounts that trading sites and banks offer.
“This is a mistake that a lot of traders make where they don’t practice. They think they can go right into it on day one and make money. That’s not how it works.” Borzykowski recommends spending a month practicing before diving into day trading. “Practice, because you need to get your skills to a level where you will make money.”
Here are some of the other mistakes people make, according to Borzykowski:
- Probably the biggest mistake is becoming emotionally involved. “If you are going to get emotionally invested in trading, you are going to lose more,” he says.
- Going in without any knowledge.
- Thinking you can make a ton of money in one day. Borzykowski says traders need to understand that they're playing small movements in securities. Treat it as a job, as a small business. “Don’t expect to be a millionaire out of this. If you do, it’s not going to work.”