Here are a few more silly mistakes made by new spreadbetting daytraders.
1. Trading just for the sake of it. Some new people think that if they are sitting in front of their screen, then they must be trading. But experiened traders sit and watch the market and plan their entry and exit points. So, if they have a winning trade, they know roughly when they are going to leave it and also if they have a losing trade.
2. Trying to trade the news. This happens a lot to early traders. Don't forget, by the time it has made it onto the news, it might have already been factored in to the share price. Also, for trading indices, there might be something devastating like a European country defaulting on their debt, but this might be offset by the US agricultural figures, which might stop you out within a few minutes before the markets settle.
3. Not having any stops. Trading without stop losses is like opening your purse or wallet and turning it upside down. Keep sufficient safeguards in place to stop yourself losing all your money. Many trading firms now automatically have a built-in stop loss. Find out if yours does and if it doesn't, then put your own in.
4. Trying to trade the overnight movement. Especially true for the indices, the Dow Jones and the FTSE etc., a lot of movement happens in the grey market. So it will open up 100 points and then do nothing all day. The news headlines are FTSE up 100 points, but you have made £5 all day. If you are lucky once in a while, you will catch this movement, which is very nice. But more often than not, you will hear some news and wake up in the middle of the night to place your trade so it is ready for the morning. But in the morning, the news is all ready factored in so it drops like a stone.