Day Trading Advice
The stock market is an entity that just keeps changing. Every day, it presents us with a unique scenario. However, the market is also a reflection of the attitudes and ideas of people in general. That, combined with the fact that human beings are creatures of habit, has resulting in a tendency for stock movement to follow habit. That’s why we can benefit from technical analysis when day trading.
The down side is that, like people, technical analysis isn’t necessarily completely reliable. You can’t use the same core pattern in each and every market environment. While there are setups to look for at the beginning of the day, you can’t assume that every time you see that setup, the stock will perform the same way. There are always exceptions, and learning where they are can create the difference between a successful trade and a failed one.
Successful day traders will be able to adjust to the changing circumstances of the market on a daily basis. They’ll also have a few other traits that make them winners. For instance, a successful day trader should be able to stay neutral, maintain a business plan and journal of trades, and will focus on just a few techniques that work well for them.
If you want to be a success in this business, you also have to be a great manager of money, comfortable with uncertainty and risk, and willing to accept personal responsibility for every action you make. That’s going to require a certain level of comfort with day to day risk – you could lose on any given day. In fact, one of the biggest mistakes new traders make (after overconfidence) is allowing themselves to be paralyzed by fear.
Staying neutral means taking your wins and your losses calmly, no matter how big they are. The market must not be allowed to control your emotions. If you really want to be a day trading pro, you can’t let the oscillations of your account from day to day take over. No one can be a robot, but you do need to stay neutral and logical if you’re not going to lose it all.
A business plan and a journal are also vital. Documentation and careful though go hand in hand. You wouldn’t open up a restaurant without a plan, and you shouldn’t take up trading that way, either. In addition, no other business would operate without clear records of finances and what has been bought and sold. That’s why you must keep a journal. This will tell you why things are going wrong or why they’re going right, and you can learn from your past behavior.
Focusing on just a few techniques is important. After all, none of us want to be jacks of all trades, but master of none. Focus is important if you’re looking for success, because it’ll help you be proficient at the techniques you choose. Add that focus to a skill with money, and your chances improve greatly. Day trading is a tough business, and being able to manage risk and money effectively will help you a lot.
Source by Grant Dougan www.positivestocks.com
Day Trading Advice
The stock market is an entity that just keeps changing. Every day, it presents us with a unique scenario. However, the market is also a reflection of the attitudes and ideas of people in general. That, combined with the fact that human beings are creatures of habit, has resulting in a tendency for stock movement to follow habit. That’s why we can benefit from technical analysis when day trading.
The down side is that, like people, technical analysis isn’t necessarily completely reliable. You can’t use the same core pattern in each and every market environment. While there are setups to look for at the beginning of the day, you can’t assume that every time you see that setup, the stock will perform the same way. There are always exceptions, and learning where they are can create the difference between a successful trade and a failed one.
Successful day traders will be able to adjust to the changing circumstances of the market on a daily basis. They’ll also have a few other traits that make them winners. For instance, a successful day trader should be able to stay neutral, maintain a business plan and journal of trades, and will focus on just a few techniques that work well for them.
If you want to be a success in this business, you also have to be a great manager of money, comfortable with uncertainty and risk, and willing to accept personal responsibility for every action you make. That’s going to require a certain level of comfort with day to day risk – you could lose on any given day. In fact, one of the biggest mistakes new traders make (after overconfidence) is allowing themselves to be paralyzed by fear.
Staying neutral means taking your wins and your losses calmly, no matter how big they are. The market must not be allowed to control your emotions. If you really want to be a day trading pro, you can’t let the oscillations of your account from day to day take over. No one can be a robot, but you do need to stay neutral and logical if you’re not going to lose it all.
A business plan and a journal are also vital. Documentation and careful though go hand in hand. You wouldn’t open up a restaurant without a plan, and you shouldn’t take up trading that way, either. In addition, no other business would operate without clear records of finances and what has been bought and sold. That’s why you must keep a journal. This will tell you why things are going wrong or why they’re going right, and you can learn from your past behavior.
Focusing on just a few techniques is important. After all, none of us want to be jacks of all trades, but master of none. Focus is important if you’re looking for success, because it’ll help you be proficient at the techniques you choose. Add that focus to a skill with money, and your chances improve greatly. Day trading is a tough business, and being able to manage risk and money effectively will help you a lot.
Source by Grant Dougan www.positivestocks.com