Top 5 Day Trading Beginner Mistakes | Chat Room Alerts, Sizing, Trading Plan & More

Learning to day trade was probably one of
the hardest things I’ve ever learned. And I will be the first to admit that I do
not call myself an expert day trader. Because the stock market is ruthless, the
moment you start thinking you know it all is the moment you will be humbled. I believe, especially for beginners , knowing
and understanding your downfalls will drastically make you a better trader. Here are are the top five day trading mistakes
beginners make and how you can avoid them. Number one, not having a trading plan. You see a stock going from four dollars to
six dollars within minutes and you feel all excited. Your heart’s beating fast, your foreheard
is sweating up and your brain’s screaming, “I must buy now or else I’ll miss this!”. And without thinking you just click buy. Well once a while you get lucky and you manage
to make a few buck here and there, but all it takes is one instance where you got in
at the VERY TOP. And the stock completely plunges after you
bought it and you lose 10%, 50% of your account. Does that sound familiar? I have done it, most of us have. This is what we call, FOMO, fear of missing
out. Before getting in a trade, you must create
a trading plan. I encourage al beginners to write this plan
out on paper. 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, and exit plan, you are already setting yourself up for a higher probability
trade. I will make a video going over what a simple
trading plan looks like. Your trading plan should tell you why you
should go long or short, for example, let’s say hypothetically $TSLA just released good
delivery projections next quarter, that news is bullish, so I want to go long. Then you must make sure you risk reward is
three to one, meaning if you if I enter this trade after the first 10 min candle, at around
$305, i will set the low of the day as my risk which is $304. Knowing how much tesla can surge on high buying
volume, I think the stock has the potential of going to $308. So basically you are risking $1 a share on
Tesla to potentially make $3 a share on this trade. That is the risk reward you should have. And your exit plan is the break on low of
day $304. And there is the simplest trading plan you
can make as a beginner. It’s just as important to follow your plan
as it is to make one. Because if you don’t follow your exit plan,
it can easily lead to the next trading mistka. Number two, Over trading. Most beginner traders focus on trading to
make PROFIT instead of trading the chart and their plans. Imagine this, you’ve made a few good trades
on the day, $100 here, and $400 there. Your PnL on the screen corner says you’ve
made $890 on the day so far. You’re feeling good but you really want
to hit that nice round number of $1000. So instead of taking a break during middle
of the day, you keep on trading. And entering positions that perhaps are not
your A set up. You start losing, that $890 went down to $750,
then $400. You are getting emotional and extremely frustrated. But you wont stop because not only are you
not hitting your $1000 goal, you just went down from the nice $890 you had half an hour
ago. Over trading leads to emotional trading, and
eventually to revenge trading. Where you are just going back to the stock
you’ve just lost on and attempting to make that money back. Well, we all know how this story ends, when
the closing bell rings at 4:00 EST. You’ve gone from $890 profit on the day
to down -$300 red on the day. And that, is the story of the first few months
of my trading journey. I knew how to make money in the market, but
I cannot keep it. because I let GREED get in the way by overtrading. Here’s how you can prevent over trading. Follow your stop loss. No excuses, if you planned on on getting out
of that that trade at $8, do it. Yes you are taking a loss, but it’s a planned
loss within your risk profile from your trading plan. Next, walk away from your computer during
the lunch hours 11:30 to 2:30pm EST. Generally those are the hours where stocks
are consolidating and not much action happens. Trading only the open and close hours will
allow you to get the meat of the move and not waste time and money on set ups that won’t
be profitable due to lower volume. And most importantly, when you feel distressed
and getting emotional, shut down and walk away from your trading station. Most emotional trading leads to even bigger
losses. I know because I’ve done it. Many times. See, most traders know what NOT to do, but
when your adrenaline is kicking and your heart beats up your emotional side takes over and
you stop following your own rules. This is detrimental and WILL blow up several
of your accounts. So take the break, walk away, the market will
still be here when you are back tomorrow with a clear head and present to you endless opportunities. Now let’s move on to the THIRD beginner day
trading mistake, not spending enough time paper trading before going LIVE. When I first started I spent six months paper
trading before going in with my real money, but I wish I had practiced even longer. Paper trading, which is trading with simulated
money but on Live charts, allows you to learn to plan out your trade as I had mentioned
earlier in this video and also getting familiar with the technicalities of your broker interface. There is nothing more frustrating than accidentally
selling a full position when you mean to scale out, or not knowing how to change your long
orders to a short. But hey! I’ve done all of that! So that’s why I’m advocating everyone starting
out to PAPER TRADE. And you’ve gotta be real and disciplined
and treat your paper trading account like real money. That means, if you will only be funding your
Live account with $5000, then paper trade with $5000, and not the default $1 M dollars
many brokerages let you have. Not only will paper trading allow you to get
used to your broker interface, it’ll also allow you to get screen time in the market
and learn your technical analysis skills. We have all seen these chart templates with
these clearly labeled candle patterns that makes trading seem soooo simple. But in all honesty, reading chart patterns
live on a brokerage platform is nothing like these clean pretty pictures at all. Watching how candle charts develop into patterns
with the volume, and observing how each stock trades differently in reaction to various
news, these are the kind of experience that takes time in front of the screen each trader
must go through at their own pace. Take your time with paper trading, practice
your discipline and strategies this way. And the market will still be there when you’re
ready to go LIVE with real money. Beginner trader mistake Number Four, scaling
up too much size too quickly. I remember clearly how happy I was after I’ve
started making $100 each day. I was excited and feeling pumped. Hey $100 a day is $500 a week. Not bad for trading about only three hours
a day. Then I started thinking, hey if I just size
up my shares by adding a 0 to my share sizes, basically using 10 times my normal size, then
I’d be making $1000 a day, which is $5000 a week. Well, let’s just say this overconfidence
with sizing didn’t end up too well for me. Not only did I lose all the small $100 dollar
wins from the last few weeks, I completely blew my account. Because see, I did not take into account the
emotional stress scaling up would create. If my risk was $30 loss to make $100 a day,
suddenly the risk is now $300 to make $1000. And while I wanted that nice number of $5000
total in one week in my bank account, I was not ready for the $1500 losses. And those position sizes, when scaled up too
quickly, will lead to emotional trading. So traders, please take your time with sizing,
give it months before even adding a quarter size, then two times. Take it slow, this will allow you to mentally
prepare for the possible bigger proportional losses. Now Last but not least, the biggest beginner
trader mistake I see is Following Chat room alerts. Yes I did save the best for last. While I do agree it’s better to learn with
an online community of traders who you can share ideas, ask for feedback, I think following
ALERTs given by chat rooms telling you to buy or sell a stock will put you months if
not years behind your journey to becoming a profitable trader. And here’s why. First of all, most of these rooms give you
alers to buy or sell without breaking down why you should do so. This creates followers, also known as sheep,
who blindly buys in without any plan, and guess what, most of these sheep lose money
because they don’t even know why they were in the stock in the first place, and when
the stock goes down soon after, they panic and they market order out for a huge loss. You could be lucky and make money from these
alerts, short term. But in the long run, being a follower will
drain your account, especially if you are in chat rooms with thousands of followers. These are what we call, chat room pumps. The moderator buys ten thousand shares on
a low volume penny stock, then he alerts his followers to buy. Guess what, especially with thin stocks the
price surges, 20% within 30 seconds because all of his followers bought with him. Seeing the price hiked, the moderator sells. Then he alerts everyone to sell, AFTER he
had closed out for a fat profit. Guess what, all his followers listen to his
alert and sells at the same time. If you were a lucky sheep and fast, you’ve
made some money, but most of those followers will be left holding the bag after the mod
had exited the trade and the stock price plunges. In my first year of trading i have perhaps
tried out five or six different chat rooms and have seen instances like these first hand. This topic of trading chat rooms deserves
an entire video on its own. I don’t think all chat rooms are scams. I have been in a couple of very beneficial
ones actually. But again, I’ll go over that in the next
video. So in summary five biggest mistakes beginner
traders make are… Number one, not having a trading plan for
the thesis, risk reward, exit plan. Two, over trading, which leads to emotional
trading and revenge trading. Number three, not spending enough time paper
trading and learning the basic order execution and technical analysis with live charts. Number four, sizing up too quickly. And five, perhaps the biggest mistake, in
my personal experience, following chat room alerts blindly and without thinking and learning
for yourself. Hope pointing out these mistakes and my own
personal downfalls with them help you guys out when learning to day trade. Mistakes will happen but learning from them
is part of the journey of becoming a profitable trader. I will be posting a video next week discussing
my experiences with trading chat rooms, what are some good chat rooms that can actually
help you as a trader, and how to avoid the ones that are just leading you on like a sheep
and scamming your hard earned money. So leave me a comment down below if that’s
something you want to see coming up, and please like and subscribe if you haven’t already. This is the humbled trader, thank you guys
for watching and i will see you next time.

41 thoughts on “Top 5 Day Trading Beginner Mistakes | Chat Room Alerts, Sizing, Trading Plan & More

  1. Can you also explain what's a good real-time brokage ? I've lost some money buying stocks selling stocks because of a bad brokage not being precise with their pricing

  2. WOW, you were making $100 a day daytrading. That is very impressive, when I first started I was losing money. Just subscribed, I like your content humble trader.

  3. Hi Millennial Stock Trading, could you make a video explaining some Day Trading Strategies for Beginners? Thanks for this info

  4. I love this video , is like u talking about my experience for the last couple months . Is funny 😂 I'm listening and thinking what the hell have I been doing .

  5. I'm really curious which chat room are good/bad, I understand you don't want to get sued but can you please direct me to good chat rooms? (I'm sure you won't get into trouble for actually promoting a good chat room) thank you so much!

  6. Wow this is what happened to me today. And the thing is I don't usually trade after 11:30 it was just so hard for me to walk away because I had made so much in such a short period of time, and greed took over. You should make a video on "how to control your emotions while trading". Most videos and books I have read just tell you to control them and not "how to".

  7. Thank you so much for everything i think this is why I’m losing so much money on paper trading because I have no trading plan and I’m trading in big numbers

  8. Great Video! Thanks for sharing!
    Would you make a video on swing trade and what financial indicators should you monitor?

  9. level 1: consistency profitable -> level2: sizing -> level 3:adapt in every market -> level 4: Helping new generation traders

  10. Ugh I just caught myself doing it again in my demo account with futures. At least it was a demo account this time 😂. The first time it was not.

  11. hi, im looking for the other chat room ( CHAT ROOM REVIEWS) video you made…I don't see it anymore….what was the 3 chat rooms you recommended?


  12. I think my trading software isn't nimble enough ( I use BMO in Canada.); I am going to ask them about setting up my own personal 'hotkeys' as I don't like the options of buy or sell at bid/ask – I prefer price limit orders. Question for you Humbled Trader – when a stock is moving quickly how do you manage to put in a buy order and then set up the sell stop order? I assume you can't put in the sell stop order before the buy order or you could potentially end up with a short sale (assuming brokerage even allowed the sell stop order before the buy order). Any advice? Thanks for your videos – they are helpful and entertaining.

  13. One of the biggest mistakes is not mastering your emotions. I remember I use chase a stock. I would instantly regret it because it would drop dramatically. Now I have a plan for each trade I enter. I know why I am entering and how long I want to stay in. I also have strict stop loss levels set if it doesn’t go as planned. If I spot a play but don’t take it, and the stock shoots up, I STAY OUT because I missed it and it is more than likely out of my price range at that point. I tell myself it will happen again……it always does. I take that opportunity to learn. That helps me cut down on emotional trading and revenge trading. Greed is something I have been working on lol. I have gotten better at controlling it.

  14. I have been trading for about a year and a half now. I haven’t blown up my account but I have slow growth because I tend to be conservative with my trades. I am learning how to be more aggressive.

  15. Well done, every beginner should watch this, and they would save so much aggravation, not to mention MONEY ! Big Thumbs up, those mistakes I have made , and some I still make, its difficult to control emotions….you put this together so clearly, thank you again

  16. I appreciate this video, thank you. The point of not paper trading long enough is so important and nobody but you says it…also scaling up ….great points

  17. 😑 it's like this is a biography about my last week. Lol should have watched this sooner! Great video, very helpful and very true. Made 1500 in 3 weeks from 5000 , got over confident and scaled up too much and got over emotional and lost 2800. Great video 👍

  18. LOVE this video HT…. I am Guilty on all accounts. Chat room + No Plan +Scaling Up to much + FOMO ==== My largest loss thus far $ 2500.00. I was devastated and to Punish myself even more I had to still Tell My Wife. I took a step back and waited till the tears and fears subsided. I went back to the paper trading to reeducate myself ( really to just remind myself what I had learned ). I no longer blindly follow chat rooms, I still have them but only for the purpose of having many eyes out there looking for me. I have to look at the stock and find out why it is moving, do my own analysis and DD and if the ticker is Moving so much that I don't have the time to do my own DD then I stay out, well I try lol… I am still but a mortal and I do my best to follow the rules but, sometimes I hear the trickster inside my head telling me … Rules, what rules. You made them you can remake them.. Do what you want, You are your Own Rule God!!! Sometimes I do mess up but I try to keep my mess ups cleaner then they use to be LOL…. Again HT Great Video. and when I feel the Trickster coming for me I will come back to this Video.. PLEASE do us all a Favor.. You had said that even you found some good Chat groups. That is awesome for you… How about Starting one on Discord so the rest of us can find a good and helpful group that will help you out but WILL hold you Accountable and keep you honest to and with yourself… Liked

  19. Well done! I paper traded for two years. The platform didn't great hotkeys that I could customize. I am now with a broker who has great hotkeys, and I test them in my demo account down the lunch period.

  20. I was an hobby trader for many years but now am seriously into it. I have watched most of your videos but I believe this is the best of them all. Keep up the good work and thanks.

  21. I love your channel. I am starting to fee more comfortable with the thought of trading the stock market. Thank you!

  22. How in the world does this best day trading video that I have ever seen ONLY have 6k views?! INSANE! Because it's not sexy enough……. You need to lie more to get more viewers. Truths are boring. 😉

  23. I know almost nothing about the stock market, but a friend sent me a Webull link so I signed up, got a free stock, and paid them $100 (or “funded my account”) in order to get a second free stock. Now Webull has my $100 in my “account,” and I have 2 stocks worth a total of less than $12. I have looked at the Webull app and I’m completely overwhelmed. I don’t understand anything. Where can I learn how to use this at the most basic level? I mean, I haven’t even figured out how to use the $100 to buy an actual stock. Help!

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