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8 WAYS TO BE A BETTER TRADER |
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8 WAYS TO BE A BETTER TRADER
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By:
Leroy Rushing |
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Even the best traders in the market have trading sessions that are less than optimal. Human nature dictates that we make mistakes, and trading the stock market is no exception. Subsequently, there is always room for improvement, whether you are a novice trader or a seasoned veteran.
1. Stick to Your Guns - Don’t try to run from the market. The only way to boost trading profits is to stay in the game and keep trading. Running from the trades and the action will keep you out of the market, whether it is hot or cold. Sticking to your trading plan and enacting trading discipline are the keys to producing profits.
2. Set Stop Losses and Take Profits - “Set and forget” trading is generally profitable. When you place each trade, remember to place your exit and stop loss, and then let the market be your guide. Have a preset limit of how much you’re willing to win and how much you can lose. Technical analysis will tell you the best price for selling (near resistance) and the best place for buying (near support). Support and resistance points are the best places to put limit orders.
3. Don’t Watch Minute to Minute - Swing traders should be keen to avoiding the minute to minute movements. It’s easy to set an exit point that will not be hit for three weeks, but then close a potentially profitable trade due to minute by minute movements. There is no reason to get out of a trade for quick profits if you’re in for the long haul. Small ups and downs create temporary stress and can reduce swing traders to day traders. Niche trading works because you’re specialized in your own area.
4. Eliminate High Probability Trading - You wouldn’t expect to make consistent profits at the roulette wheel, and you shouldn’t do the same with your investments. The active, professional trader only takes quality trades opposed to quantity of trades.
5. Accept That Full-Time Day Trading Is Rough - The ups and downs of full-time day trading are very stressful. Find something you can do each day to wind down and get rid of your stressful day to day anxiety. Stress will make you think differently and trade differently. A professional trader will need to find ways to vent their frustrations as bad days do happen to the best of traders.
6. Pick Swing Traders or Day Traders - Know exactly what kind of trader you want to be. It is difficult to be very good at swing trading while following the short term movements of day trading. Define what kind of strategy you want to follow and stick with it.
7. Don’t Get Attached - You’re out to make money, not be married to a stock. Even if you’ve got the feeling that this stock is “the one,” you should be ready to dump it when the price is right.
8. Talk to Other Traders - Talk to other traders with more or different experiences. Getting a feel for the markets is paramount to producing profits. If you can get trading down to a point where it just comes naturally to you, all the better.
About the Author:
Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide. Trading EveryDay also has many articles with unique perspectives on day trading.
Article Source: www.find-an-article.com/index.php?page=author&author_name=Leroy Rushing
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