Day trading is one of those things that is honestly really simple in theory, but very difficult to master. So many gurus, and teachers out there that are great at teaching and give solid advice in most cases, but cant honestly expect someone to go from never placing a trade to having the skills that took them years to acquire. Day Trading is an obsession to those of us that are focused and results driven. Discouragement has no real place with a Trader. If you are reading this and are discouraged by your own trading, Don’t be!!! Every trader goes through the gauntlet. Loosing money unfortunately is the right of passage, and provides valuable lessons if you accept them. Let me Show you some of the harsh lessons I learned from the market-
1. You Have No Idea How Much You Will Make So Stop Trying To Make Money –
This one is crazy right? I mean why trade at all if you are not going to make any money? That’s not exactly what I mean though! What I mean is that We all start with the misconception we are going to make some real money, and that we are sophisticated now that we are market traders! The Market will crush any Ego you once had Don’t worry…lol. I know I say this a lot but it is also the only truth. There are only a couple…ok a few things that we actually have control over when we are lining up a trade. #1 The Stock/asset We trade, #2 Where We Enter, and #3 Where we Exit whether with a gain or a loss. These are the critical things you should be focused on and not making money! Remember this, and it will help you out in the long run.
2. You Are Not Disciplined As A Trader Yet –
Doing what is necessary when it is necessary is the true definition of discipline. As a trader you will need to fight your bad habits that have been created thousands of years ago by your ancestors. Being able to keep your composure and not fight the market will save you a ton of money. Understand that if a trade doesn’t go as you planned, so be it. Take a breath and stick to your guns. Do Not …..and I repeat Do Not go on a rogue trading spree trying desperately to get your money back. This is emotion driving the train, and The Market does not have any emotion.
3. You Just Don’t Have The Experience Yet –
I have seen this time and time again, In chatrooms all over. A new trader has made a successful trade and is now an expert! This Is one of those times where we need to be cautious about who we listen to. If you have made a successful trade and you have not been in the market that long congrats, but don’t start drooling at the new world of possibilities that you believe just opened up. No need to get excited and toot your own horn because I have seen the man on the high mountain quickly catch the wind and was at the bottom in a matter of days. Its no fun, I hate the harsh reality of it but if you avoid that ego habit and diligently track your habits with your trading it may give you an upper hand over time.
4. You Follow The Crowd –
Ok, there is two sides to this one. Call outs themselves are not bad and have myself given good shout outs before. The caveat to this is that the person giving the call out may understand the opportunity he/she has given, but the real question is DO YOU? I have seen this too many times to count also. The chatroom is buzzing with tickers and points on the chart of interest, but if you jump at the buzz you may get stung. Be wary of callouts because they aren’t all great, I have seen some hideous tickers cross the morning chat with determination that this will happen or that will happen. As I said in #1, no one knows what will happen, so conduct a very diligent recon on whatever MRSTOCK01 has to say. (I hope no one has that name in any chats because I literally just made it up, so if you are reading this and that is your name…….. I meant no offense)
That about wraps up my thoughts on Why You Are Not Successful At Day Trading. If I can think of any more I will be sure to write a #2 to this piece and post it here on THE FREEDOM GRIND Blog!!! As Always happy trading!
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