Day trading is a business where you have to think both ways. You have to enjoy the profits and embrace the losses.

Here we will discuss the five reasons why day traders are losing their money every day

•        Over confidence that comes after a few successful investments

1. 

If you are making profits, that doesn’t mean you are not going to suffer loss the next day. Do not get too carried away by profits, or you might make mistakes and suffer a capital loss.

•        Lack of research that leaves you clueless at times

A day trader needs to be up to date and synchronized with the current market activities.

Insufficient knowledge will leave you vulnerable to market fluctuations, which is the main cause which makes day traders lose most of their money.

•        The hunger for more positions

This is one of the most common mistakes made by inexperienced traders. Holding more positions technically means dealing with more money and increased chance of profits. This is not true in a practical sense as it is not considered profitable to hold more than two positions at a time.

•        It is uncommon but acceptable to hold overnight at times

According to the current trend; it is more productive not to hold the stocks overnight because of the higher risk of market fluctuations the next day. Sometimes it is profitable to hold the stock for the next day if the trader is expecting a loss, but holding overnight anticipating profits is nothing more than gambling.

•        The inevitable loss that eventually hits

This is the worst nightmare as I have said above, which is true in every sense. You are going to suffer losses that might leave you hopeless, but with every loss, you get to learn something. Take this opportunity as a learning experience and do not get demotivated if certain losses occur. Try another day, as no one makes money every single time.