'If you look at a totally random pattern long enough you will start to see almost anything.'

Identifying stand out stocks to trade can at the best of times be somewhat subjective which is why there is always an ever present risk of ‘over analysing’ a stock which can all too often lead to seeing trades where there simply are none.

One of the hardest things for a day trader to do is ‘nothing’!

This is why having the right temperament is absolutely crucial to becoming a successful trader.

The most successful traders are pure opportunists, they do their homework well in advance and then lay in wait to strike with maximum effectiveness. Like a viper, conserving its energy yet totally aware and with full anticipation of the perfect moment to strike.

This perfect moment and the patience needed to wait for it is one of the hardest lessons to learn when trading in stocks. But when mastered, this skill will turn a solid day trader into a virtual Nostradamus of the share market.

The two main errors made with using online trading software and technical analysis are to do with timing.

Procrastinating or waiting just a little longer when all indicators are screaming at you to get in there will only cause you to miss the boat completely.

While getting over anxious and jumping the gun can greatly reduce the potential upswing of a trade and cost you much of your potential profit.

Although it is unrealistic to be able to read the price movement of your trade with 100% accuracy, you should aim for a conservative 15% buffer at both the buy and sell end of your trade which will leave you with a 70% profit band from the buy entry to the sell exit.

Of course you may do much better and much worse than this, but 70% of the anticipated price movement should be your conservative goal.

By adopting this conservative entry and exit strategy you have much better chance of avoiding waiting to long and missing the boat altogether, having the price turnaround and buying to high; as well as buying way to early before the price has bottomed out.

To avoid these two commonly made timing mistakes, plan your entry and exit strategy well in advance, be confident in your technical analysis and you should avoid these two most frequently made trading errors.