Day Trading Game
Day Trading is by far the hardest form of trading. This is due to the speed at which a trader must make decisions. In day trading, there are a number of factors, which will prevent a trader from entering the zone. Below is a list of villains that keep cash out of your pockets.
Over trading can mean many things to many people. To some 3 trades is too much, to others 10. Greed will always flow through your veins, but you must remember that with each new trade comes risk. Limit the amount of trades you make per day and instead focus on the quality of the setups.
Sabotaging the Trade
Day Trading consists of mainly choppy moves with the occasional big winner. Traders will often be worn down from the constant ups and downs that psychologically a trader is unable to capitalize on the big winner.
Day Trading Money Management
The last dagger in the back of a day trader is money management. How much do I use per play? The answer to this question is based on the amount of volatility in the stock. If a stock has wide spreads and large percentage points between candles, it’s probably not a good idea to go all in.
How to Tame the Beast
The best way to tame the beast is to turn day trading into a game. Not a complicated game like football, or basketball. Pick a mundane and boring game. The best one that comes to mind is bowling. Notice how a bowler will approach the lane, set their feet, and make the same motion with every toss. A bowler doesn’t go on a rough streak and then change their stance mid-game. So, if you are day trading, make it a game that you can keep score of. Trade the same setups each day. Use the same entry and exit strategies. This repetitive process will bring about true discipline, and consistent profits.