Technology problems: This includes delays in transactions due to Internet connection outages or power failures.
A mentor’s absence: Lack of guidance from an experienced broker may lead to formulation of improper trading strategies, resulting in huge losses.
Overtrading: Online traders generally have a long term strategy before investing. However, the lure of capitalizing on short term movements makes them buy and sell more frequently. The low level of commission in online trading further lures the investors into day trading. This takes the traders away from their well-researched long term trading strategy, causing losses in the long run.
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