| When it comes to trading Contracts for Difference | | | | market for a couple of kicks at a time and as a |
| most people would be better off trading over a | | | | result must be able to make very quick decisions and |
| longer time frame and staying well clear of intraday | | | | be confident on their computer. If you are slow on |
| data. The reasons for this are very simple:o End of | | | | your computer and you miss three ticks then that |
| day traders avoid emotional intraday decisionso Many | | | | could make the difference between a winning and |
| traders are not quick on their computero New | | | | losing trade. The shorter your timeframe the more |
| traders are not disciplined at hitting their stop loss | | | | important every single tick is and the faster you |
| Stay clear of irrational intraday trading decisions | | | | need to be with your computer skills. |
| Many end of day traders have a tendency of looking | | | | Are you disciplined to hit your stop loss according to |
| at intraday data during the day. As a result their well | | | | your trading plan? |
| laid out trading plan, which includes stop-loss and | | | | Lastly many new traders are terrible at hitting their |
| profit targets, get overridden whilst looking at the | | | | stop-loss when they need to. In fact the most |
| highly emotional intraday data. It is not uncommon for | | | | common problem new traders' face is when the |
| an end of day trader to make an irrational intraday | | | | market proves them wrong and they move their |
| decision to sell a stock that is moving down only to | | | | stop-loss down. Not only did they get the initial |
| see that position move up strongly by the end of | | | | direction wrong but they compound their error by |
| the day and continue in that direction over the next | | | | moving the stop-loss down and taking a much larger |
| week or two. By accessing intraday data the end of | | | | loss that was initially anticipated. |
| day trader made a silly decision to sell and as a result | | | | If you are a new trader and you don't have the |
| left a lot of profits on the table. | | | | discipline of the hitting your stop-loss or you have a |
| Basic computer skills mean 'stay clear of intraday | | | | tendency of moving your stop-loss down then you |
| trading' | | | | should definitely avoid trading on a short timeframe |
| The second point worth considering is that not many | | | | and you should not be using any leveraged trading |
| people are very quick on their computer. By | | | | products. Sticking to end of day data and making end |
| accessing intraday data and trading on a short | | | | of day decisions is the wisest thing for new traders |
| timeframe indicates that you are proficient on the | | | | to do. The longer your timeframe the less small |
| computer. Intraday traders are usually scalping the | | | | errors will hurt you. |