Are you aiming for success in day trading? If you are willing to stick to the following three key components while day trading, you will have greater success and increase the probability of reaching your goals. For someone who is new to day trading keep in mind that this is not a “get rich quick” fix. As with most things in life, to be consistently successful you must apply yourself. In order to become a proficient trader consider the following three points:
– Study and review
– Emotional Control
It is of utmost importance to have discipline in any career but especially in stock trading. As a day-trader, you will need to set some specific guidelines and rules to follow. It is easy to get off track unless you have specific guidelines to keep yourself with-in certain parameters. Anything outside those parameters could very likely throw your focus off and cause you to make an error you typically would not be so inclined to do. Day trading is not the sort of business one should have the mentality of “shooting from the hip” or “let the dices fall where ever they may.” If it is your desire to reach your profit or income goals in trading of any kind, discipline is necessary.
Find a day trading or swing trading strategy that works well for you and work on that strategy until you become proficient. After accomplishing the consistent success of using one particular trading strategy, you will be ready to move to another trading strategy. It is good to have multiple strategies so you will be able to handle different trades as they present themselves. This could apply to stock trading, forex, futures, etf, or index trading.
Study and review
Learning to day trade requires one to apply themselves by studying the different concepts of trading and of course studying strategies. To have success of any kind one must be willing to put the time in. It may be cumbersome at first, but as you begin to grow as a day trader and witness reaching your goals, it will be worth the time you contributed to studying. Make a practice of reviewing your trades at the end of every trading day. This is a great study habit and daily practice. Review your trades and make notes. Ask yourself these questions:
1. Was the opening transaction correct and was it a good price?
2. How could it have been better managed?
3. Was the stop set correctly or should it have been tightened or loosened?
4. Was the exit timely or should I have waited longer in order to capture full profit potential?
Have you ever noticed that people who have a positive attitude have a more definite energy about themselves? People with a negative attitude exude a much different or less alluring energy. Which one would you rather be around the most? While observing positive versus negative people, it is easy to see that a positive attitude produces more success than a negative attitude. So you say you would like to achieve success in your day trading career. Then a positive attitude is necessary!
Everyone has a difficult day from time to time. Being either a positive or a negative person does not prevent you from having a bad day. So yes, you will have a bad day from time to time in stock trading or any day trading strategy. It is how you handle that bad day that will determine if you are able to overcome it or not. Stay positive and your trades are more likely to improve!
One last thing, remember there are many, many people or day-trading coaches who will promise you the world and build false hope saying, “there is nothing to it.” Make sure, if you follow someone’s guidance that you do your research and verify his or her own successes. In order to capitalize on your day trading strategies and rules it is very important to get the correct guidance in the first stages of your trading. Then you can build on the things you learn on a daily basis.
Good luck with every endeavor you make in day trading!