HOW TO AVOID DAY TRADING MISTAKES -
CONTINUED
STEP 5
Purchase the right computer equipment and software and
information service resources. For on-line trading, you need a high-speed
Internet connection to minimize latency. Nobody said becoming a day trader is
cheap. In addition to reliable and possibly even redundant high-speed
connections, you will require specialized software and a variety of different
analysis tools, not to mention your real-time research tools (including daily
real time access to stock quotes and ticker feeds). Be prepared to spend a
significant amount of money (in addition to your trading capital) before you
place your first trade. The key here is to get some expertise as to what you
need and configure for optimal efficiency and latency - which is a tech word
for how long it takes your system to get info from the source (the markets).
Your trading coach will guide you here. You want to have the best computer and
monitors you can buy, not off the shelf stuff designed to do non trading tasks
(video, games, software or Website design). Your computer must be highly
reliable and you must have the best technical support - allowing you to perform
competitively with any other traders in the world, including hedge funds,
market makers, and the big money traders with very fancy software. Don't wing
it on your own. Get an expert to help you out. Working with a trading coach,
you can eliminate the noise (that causes most traders to quickly become big
money losers).
STEP 6
Create a trading plan and stick to it. Successful traders
have a plan. Highly profitable winners have a plan developed with their own
trading coach. Without a coach and a plan, both new and seasoned traders can
easily lose thousands a day, thousands a trade. Not only that, but they need to
have financial plan set, with trading goals and limits.
STEP 7
Now, another caveat, your trading game or system far
outweighs any plan of action you come up with. You want to beat Federer in a
world-class match of tennis, don't show up with golf clubs with a great plan to
take him out. So, for day trading "it's the game, stupid" that
matters most to become a consistent winner. Strategies, plans, tactics, and so
on are perfectly appropriate in the business world and for traders to contemplate
when the markets are closed - but not so appropriate while day trading stocks,
OLD School. The stock trading game, unlike any other game on the planet,
requires a unique set of qualities for the trader and rules to apply to become
a winner in the day trading game. Applying traditional business practices and
rules to the art of day trading stock will quickly get you killed - both
personally and professionally. This is what I want you to know above all else:
the day trading game has changed, and continuously changes, so have we, and so
can you - but only with a consultant / coach to get the NEW School game, the
trade execution guidance, real time, and the support to bridge your poor
performance gaps that must be bridged as rapidly as possible for long term success,
wealth building success - or guess what? You will be forced to leave the game
all-together - as a big money loser, a brain broken loser. Now you don't want
that; we don't want that.
STEP 8
Keep track of the market. If you want to be successful at
day trading, you need to keep an eye on the markets. Another observation about
all this pre and post-market research that traders have become addicted to is a
just a waste of your time. Most, if not all is, interesting, nice for a hobby,
but it's just noise when it comes to winning trades. You would be well advised
to be in the present moment trading, not ignoring your past lessons, not
letting go the urge to forecast tomorrow's likely moves, but to be in the flow
of current price action - markets and stocks. Arrogance and forecasting kills.
Real time trading - now that's where the winners and the winnings are to be
found; but you must free yourself of the noise, including rumors and most of
the so-called important news you can get from endless sources.
(to
be contd)
