Seventy-five per cent of traders enter positions originally as day trades; however, if these trades show losses at the end of the day, they are inclined to hold them overnight or longer given their refusal to take the loss.
This happens mainly because of the fact that they are not willing to accept the fact that they have been proved wrong. They often give justification that the position will profit soon.
Holding a position overnight, particularly a losing position, is perhaps the single greatest offense that a day trader can commit.
Frequently, it is also the single most costly violation of day-trading rules. Still another important quality which the day trader must develop is the willingness to exit positions by the end of the day.
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