Pitfalls of Day Trading

Modern Technology provides even the most humble investor with the facility to trade most markets in a way that until fairly recently was only available to investment professionals working for banks or investment management firms.
The dazzling array of real-time price and fundamental data displayed on the computer screen can easily become addictive. Watching the markets is like watching an exciting game of football that never seems to end....as long as you keep your money.
What many do-it-yourself money managers lack is the discipline that is essential in order to survive in the investment game.
While it seems to be easy to make money between breakfast and lunch most people lose money in this game. The charts promise instant profits: didn't this chart move up dramatically between 8 am and 10 am? Would it not have meant large profits to buy and sell then? How can I sit here and DO NOTHING while the market moves?
Soon the novice trader buys and sells at a rapid clip, positions are entered on a whim and - even worse - leverage is employed which multiplies losses if things start to go wrong.
And human nature does not help: winning positions are sold too quickly to pocket a profit while losses accumulate while the investor waits to 'get even'.
PBA will help you to resist the temptations of overtrading your account. If you are not willing and able to devote a substantial time to studying and following the markets you stand as much chance of succeeding as if you would try to perform open heart surgery on yourself.