Day trading is a very sought after profession. Many try, but few last. Why is that and what can be done for those who really want to overcome the barriers? There is no substitute for experience and being exposed to the daily market fluctuations that take place every day. Short cuts, to help speed up the process can be to find a sound trading method to build upon. This can cut down some of the learning curve for those who pursue this, but it is not the final answer. The individual trader is where the responsibility lies for success.
Every traders comes with different baggage from his past and many of those can be very negative and hidden deep within the subconscious. It is essential to know who you are and what limitations you may have from your past. Uncovering some of this first, will go a long way to overcoming your personal trading barriers.
Every trader needs to know what kind of trader they really are. If you try and trade a style that is not part of your stronger inner traits, you are not in sync with yourself and the markets. So, take time to examine that.
Me personally, I don’t like staying in a trade very long and look to exit on strength rather than on weakness. Knowing that ahead of time even as a scalp trader, I am lining up with my strength’s and the results are improved.
Being successful once you have a good idea of what to do and what you are looking for, is money management. Without this, you are going to suffer. I always try and measure how much is in the move, or where it is naturally and likely to move to. Then I try and underestimate that a bit to be sure I will get there.
The first part of the equation happens before you get into the trade, that would be trade selection. Knowing which trades to take and which ones to pass on is very important. This part is called discretionary trading and when combined with rules and principals to follow, is the best kind of trading with the best results. This would separate what is called a trading system from a trading method. Discretionary trading is putting everything you know about the market and its character to your advantage with a buy or sell signal.
Trading systems are not discriminatory, as they take signals from a predefined set of conditions automatically, putting you in the trade as those conditions are met. The problem is, if and when you hit a draw down, you are either going to keep trading it or stop. When you stop, that is the likely time that it will turn around and start to recover from its earlier losses, but without you. As you re-enter, thinking it is back on track, it then again starts to suffer draw downs and you are again underwater. This is frustrating for many traders I am sure. I never traded that way with a mechanical system but I do know the scenario’s that it plays out.
A trading method, is going to have discretionary trades to take and pass on. You need to interpret the current market conditions and see if they are favorable per your trading method conditions. If parts are missing, you are better off to pass. If the ingredients are all their, proceed and do not hesitate. This is the biggest difference between the two approaches.
To trade a method successfully, you really need to get comfortable with it and that is going to take time. To many traders rush into the trading pit and want to see what they can do. That is fine, but when the time is right. If you are going to go college for a degree, they don’t hand one out in 3 months and say thanks for coming. It is a long term venture of commitment, passion and desire what will take them to their goals. Becoming any professional is no minor operation, just the same as becoming a successful trader. It takes time to know how price reacts to different market conditions. You can jump start that, but their is no substitute for this. Those traders that have a years mindset, as a opposed to a weeks and months mindset, know that it is the truly committed who will persevere and overcome.
The other thing is having realistic weekly and monthly goals. As daytraders we strive to be profitable every day, but that is not always going to happen for sure. Shooting for a weekly and monthly profitability goal is more realistic. If you apply to much preasure on yourself in any one day that you are off, you will force trades and make mistakes trying to come back. If you have a daily loss limit, you always know ahead of time what is the worst thing that is going to happen this day. You don’t have to wait until your losses mount either, as if you are off, you can always stop before that threshold is reached. Having a weekly and monthly goal helps to release some of that market performance pressure. You always have tomorrow when market conditions are likely more favorable.
To recap; A trading method is better than a trading system, but it can be harder and take longer to master. The end results are improved performance and you maintaining control. Money management, a key to success. Without it, you will not make money. Take what the market gives easily and freely, and exit what becomes a struggle. Protecting profits and moving up your stops are a key part of that management.
Every trade starts out as a scalp for me, until the market proves itself. Scaling out is another key part of that trade management. Taking a small piece of that easy trade can allow you to stick around for the rest of the trade to develop into more without the fear of quickly giving it all back and the trade becoming a looser. All apart of trade and money management.
All of this comes with time and experience as you follow the markets. A few more things, price always comes first. Be a student of “price” and see how indicators reflect that, not the other way around. Lastly, do not forget how time plays a very important role in all of this. “Time and Price go together”.
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No trading on Friday and today. There is something wrong with the price data at Trade Station. The tick charts are way off, posting like 5 times as many bars as normal. I don’t want to try and trade what I don’t understand, not worth it. It started from the afternoon session on Friday and has continued into today. Lets hope they fix it soon. Any comments from traders on this welcomed.
Today is Tuesday October 5th and the major index’s move up sharply, to no surprise as we saw big gains with the Dow being up 191 points and the S&P around +22 points.
Just a quick update on my trading today, as I did very well, but had a stumbling block to get over first. I was up against my daily loss limit, as I got caught in the 7 am West Coast flurry. I did not check for what news was coming out, so that is my first mistake and I did not get my automatic stop in place as the market went against me. Luckily, that was only a 2.50 point loss and not anything worst. So, I gave myself one pass on the mishap to try and come back and I did, all gains after that, for a combination of around 6 net S&P points and 10 points from the bottom. Chart below.
Today’s move was no surprise to me and I welcomed it. Yesterday, one level was broken and I pointed that out, as the second one that was needed to confirm held strong yesterday and even acted as a strong spring board as prices moved off the price I quoted to the tick and we have not looked back since that 1127 S&P low from yesterdays market. Today’s gap looked like it was not one of those that was going to come back and it didn’t.
We are likely to see higher prices in the days to come. As we broke above the long term weekly resistance that was so strongly established from years back. We will likely keep pushing on the uptrend for a while as we get closer to the election. I believe somewhere around 1220 or so was the numbers on the S&P I was looking for this year.
The market has climbed “The Wall of Worry” to a tee and I am sure their are many who can not figure this market out. It constantly does what they don’t expect it too, which is exactly my point.
If the market was always easy to figure out, it would no longer offer the opportunities that it currently does. So be encouraged, when you get their, you will be apart a very small group of people who can consistently pull money out of the market on a regular basis. The thing to do is, get their, easier said than done.
It is possible, to make it into that small group, but it does take a few things that could take you several years to uncover. That is what it usually took all the great traders of today to get where they are.
Is their a way to cut down on the length of time it takes? Yes, I believe so. So many traders go from trading system to system, always looking for what does not really exist. If you trade a trading system or are pursuing such your efforts could be better spent looking into how to read the market. Trading systems usually fail, where as a trading method is very different. Their is so many facets to learning market behavior that any and all time spent here is and will never be a waste of time.
If traders would learn about these three things, “Time – Space – Energy” and how that relates to the stock market, you will be miles ahead. Back to previoius point, trading systems will most often fail, because the market rarely stays the same. It can go through long periods of consistent behavior and then move on to something else. Constantly curve fitting parameters seems like it will work until you start applying it to real trading. If you don’t know why the price is moving (space) then you are only left to guess as to its next move. If you don’t allow for time into the equation, you will often be to soon or to late with your entries and you won’t know why. If you fail to equate the importance of stored energy, you never know how long and far the market is likely to travel.
Anyone who get a handle on the above three elements “Time -Space and Energy as it relates to the stock market, will be able to build for themselves a long lasting trading business that will not be subject to the common elements that cause traders to fail.
I do teach such these things in my course and mentoring program. This is not a big pitch, but it just is what it is. Try and build your trading business or pursuits on a strong foundation like the one I mentioned above. Pursuing, something that will tell you when to buy and sell only, and that is the key, only, is not going to help you in the long run. You will be trading dependent, instead of independent.
Point yourself in the right direction and spend your trading time towards lasting solid trading principles. If you need some idea’s or just want some free advise, email me, I will point you in the right direction. If you want more than that, then we can talk, but make your time count while pursuing your dreams. That way, you will always be inching closer and closer to fulfilling it.
If you have 60 to 90 minutes a day, a computer, risk capital, the Internet, mental discipline and “Sniper Day Trading”, I believe you may have what it takes to attain financial and time freedom by Day Trading the E-Mini Futures.
Emini Course and Mentoring Program
In my Emini Trading Course, I show you how to utilize a “Sniper Trading” type approach using my tested method to earn at least 2 points per day from the markets. You could learn how to make consistent profits in good or bad markets. Our method focuses on high probability trading, delivering you your points for the day. Day trading for a living does not have to be hard, if you have the right method, plan, course of action and someone to explain it to you in a live market trading environment.
Price action, is driven by emotional buying and selling decisions for a variety of reasons, all of which are present in the current price at any given moment. Our job, is to find the turning points that exist in each session through precision market timing. These turning points are present every day the markets are open. Sniper Day trading will teach you to clearly spot where these turning points are, using a trading mastery type approach. These points show up like consistent “Sniper” shots on your trading screen and are clearly defined by using the custom tools I have created.
We strive to teach our students to learn price action apart from indicators or tools, but they are helpful to point out what may not be seen in the beginning. I am sure what I have in full is not being taught by anyone and is unique to me and the many years I have spent developing and now clearly defining the “Sniper Day Trading Method”. The signals generated by my method will produce the same signals to anyone who is following it, there is really no gray area, only which trades you decide to take and which you let go by.
Sniper Day Trading Method
We trade with tick data and use multiple time frames in timing our trade entries. I have three different styles I trade and bring them up as the price action dictates. One is a “Scalp Trading Method”, (T-1 Trade) that is very accurate in picking up 2,3 or 4 ticks on the S&P. My stops are such, that this approach averages a one to one risk/reward ratio, but enjoys a very high percentage “Win/Loss” ratio. This is bread and butter for me.
The second style enjoys the benefit of my “Precision Turning Points” model, (T-2 Trade) and is usually traded with multiple contracts. The first part is scaled out around 1 point, which quickly brings me to a no loose position and the second half is usually allowed to run. I have four incredible ways to get out, all of which act independently of each other, but are uncannily similar in their results.
The last, is a “Pyramid Trading Method”, that when conditions are right, you are able to keep your first risk small but scale into the trade, adding positions in the direction of the trend, but only at very low risk entry points, keeping your stops down to 1 S&P point. Each one of these methods are very clearly explained in my 80 page trading manual and followed up in the DVD training part of my course. They will also be gone over in our live trading sessions.
While only needing to pull 2 points after commission per day out of the market, (8 ticks) catching a few scalp trades or a T-2 trade, is really all you need to hit your daily goal. I believe in setting realistic goals, which increase your chances to meet them. By having a clear mind, a solid trading plan, with position sizing risk limits and rock solid money management, you come that much closer to trade your way to financial and time freedom.
Examples of two typical trading days back to back, applying the Sniper Day Trading Method. It only took about 20 minutes to get my daily goal plus on both of these days.
Mental Discipline and Trading Psychology. I have told you what I can offer to you, but this is not all you will need for success. I am convinced that my method, custom indicators and complete approach could make the aspiring trader profitable on a regular basis, but do you have what it takes? Trading psychology plays a huge roll in all traders, whether they know it or not. You have forces constantly working against you. Success is only going to become a reality to you, if you have the qualities needed to pull this off. What you are going to need is * Discipline * Patience * Ability to follow rules * Control your fears * Get a grip on personal greed. Frequently, I talk about this in my daily blog, because they are too often why traders fail to reach their goals.
I offer a lot of support in this area as well, if you are a struggling trader and want to change, I have the tools, method and know how to likely turn you around, so that you can create the consistent income, free up your time and fulfill your dreams in becoming a successful day trader.
Mental Exercises
In my program I address some of these issues in a series of “Mental Training Exercises” that I have put together. They are designed to get your mind thinking and believing that trading for a living and meeting your daily trading goal is normal, natural and the only outcome you will accept. The titles in the first series are; * Financial Freedom * Positive Risk Taking * Holding your concentration while trading * Achieving your Trading Goals. The titles in the second series are; * Overcoming Trading Obstacles * Controlling Emotions while Trading * Overcoming the Fear of Failure * Creating Hope & Success.
These I believe are very powerful and are in, “the first person” and will become personal to you. They are a form of Neuro-Linguistic programming that can take you farther and bring you closer to meeting your trading goals. They are, in written form and in audio CD and created by me. My plans are to continue to expand these in the future and make any new additions available to students who come on board, all at no extra charge. These training series are specific to traders and cover issues they face.
Solutions for traders, Sniper Day Trading
I realize that not everyone is born with all the qualities a successful trader will need, but I feel it can be learned if you want it bad enough. Ask yourself, how much do you want to become a consistent successful trader ? The answer to that is going to make all the difference in the world.
I know personally the things that hold traders back from bringing it all together and I know exactly what to do to help them change. I believe I can help the struggling trader as well as the trader who has never done this before.
I can set you on a course that is tailored to your experience level and walk you through everything needed and expected. The good part is, you won’t have to go it along. If you have any question, I can not only answer it, but help you apply it, to get the results you will need. Our daily goal is not to hard to hit, 2 points + per day. We can take a conservative approach to help you get that goal regularly.
If you are honest and know you need help and are willing to work hard and change what ever you have to, then I am sure I can help. Trading for a living is possible, but you need to do different, be different and think different from the majority of other traders. If you first commit to yourself these things, then I will commit to you, which will bring you one step closer to the success that we all strive for. Lastly, I want to assure anyone with doubts, my method, straight up works. The only question that remains is, will you move forward and decide to make it work for “YOU”.
Price Action Day Trading
“Price Action Day Trading”, is the key to your long term success. The markets do something everyday that is consistent since they began trading, over one hundred years ago. It exists in all time frames and gets played out on trading screens across the globe each day. It is important to understand and learn, “good price structure” and how it is built. That is what I teach and that is what students get when they partner with me at Sniper Day Trading. The key is learning what to do and when to do it and why. If you don’t know the answers to those questions you will eventually fall short. Many traders use indicators to help them and that is OK. I have them and use them also, but I do not base my trading decisions on the indicators. I base it on good price structure and trade setups that happen over and over, day after day. Traders and investors are very predictable, they base many of there trading decisions on emotion. Knowing slightly ahead, how they will react when certain prices are reached and breached, give us the trading edge we look for. With that said, the indicators magically line up with our trading decisions which can give us the added confidence to put our money on the line.
Below is a typical trading day where you will see the trading, “Turning Point”. I have stripped away everything from the screen except two things. There is much more, but I just want to show you that the indicators line up with our turning points. Which came first the chicken or the egg. The chicken and that is price. Price is always first and the indicators are second. That being said, the indicators can help traders see what is already on the trading screen. I hope this explanation helps clarify in the minds of seeking traders that what we have and do is real and works.
What You Get With Sniper Day Trading
My E-Mini Trading Manual (hard copy 80 full pages) with future updates. (very nicely done)
Complete DVD video training package in very nice hard cover locking case / extra: will include method applied to stock trading.
Method explained throughout the week, with full screen video and audio illustration in both the T-1 and T-2 screens, “Turning Points”. Very powerful part of ongoing training. (This service will be included ongoing all at no extra charge)
All custom chart settings to build your trading platform and help by me if needed to set it up.
All of my custom and modified indicators I created, that will unmistakably identify my “TURNING POINTS” for the T-1 and T-2 trades, when applied to the method.
Method checklist work-sheet ( for examining trades against method).
Laminated 8×11 “Method Overview”, to pin up over trading screen. Laminated 8×11 “Mental Exercise Overview” pin up over screen.
Mental Training Exercises: eight titles – audio CD and in written form. On-going future title releases no extra charge.
Leather bound “Trading Journal”, to help you keep your thoughts, progress, questions and answers.
I will personally work with each trader by screen sharing technology and voice of I.P. through SKYPE, in a live trading environment. After you go through the material, we will set appointments for our personal sessions together. We will apply live market data to the method and I will show you exactly what to do and how to do it. The manual and video’s will give you a head start, but working with me personally will undoubtedly bring it all together. I will spend as much time as needed with each trader who comes on board until he or she understands the complete trading method.
If in the future if you have questions, I will always be here to discuss them and go over your charts to help point you in the right direction. I am not just selling my trading method, but offering much more, mentoring and getting you profitable. Traders often face mental barriers that hold them back, but they do not know exactly what it is or why they consistently make the same mistakes over and over again. I can uncover the problems here, find the solutions and set you on your new course.
My goal is to get each trader that joins with Sniper Day Trading to book at least 2 points per day and gradually increasing contract size to a desired income goal. I will do my part as stated above, will you do yours?
Futures Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any e mini trading system or methodology is not necessarily indicative of future results.
Daytrading Involves High Risks and You Can Lose A Lot of Money.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under or over-compensated for the impact, if any, certain market factors, such as lack of liquidity. Simulated e mini trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Additional Cautions
There are no guarantees or certainties in trading. Reliability of trading signals for mechanical systems are in probabilities only. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during the methods off times (and all methods or systems have off times) – If you are looking for guarantees, trading is not for you. Most people lose trading. One of the reasons is that they are not consistent and lack discipline. A method of system can help you become consistent, BUT you have to stick to the method like a formula. The ability to be disciplined and control your emotions is even more important than any technical indicators a trader may use. Worrying about the money aspect of trades (which is an emotion) can contribute to and cause a trader to make errors. It is important to trade only with true risk capital. You can find further information at: www.sec.gov
Today is Tuesday, January 26th and the S&P market closes near the low of the day.
The major market index’s close near there lows for the day, not usually a good sign. We also put in another inside day from Fridays selloff. An inside day is when the market trades inside the previous days trading range. When that happens, we build up pressure and that pressure releases itself back onto the market, but which way? The current momentum is down on the daily and 120 minute charts very clearly, but are we going to bounce?
I did not trade today, I am traveling to the S.F. Bay area from my home in Norther Cal. I had a bit of misfortune with my computer today. It CRASHED. I lost a lot of stuff. I have some things backed up on an external hard drive, but not everything. It is very sad. I don’t have my email working through vinnie@sniperdaytrading.com . I have to reconfigure everything and I really don’t know how to it. It is going to take a little time. Anyone wishing to contact me, can do it still through Skype and leave a message under my screen name Sniper Day Trading or at an alternative email, vinnietarantino@yahoo.com .
I did see late last night an email message from an interested person in my Sniper Day Trading course and mentoring program and typed up a detailed response and saved it. I was going to send it off with a small video, more fully addressing his questions. To my surprise, it was all gone with the Crash, not “Trading Crash”, but computer crash. So, I will respond here, so I can give everyone the answers to the good questions that he asked.
The first question was, commenting on “Trading Systems”. He stated correctly that it is a fairly known fact that trading systems fail over time. There developers are always tweaking the settings to try to keep up with the changing market environment. What worked well for months, now is failing terribly. That is the nature of system trading. The question and concern was with the indicators that I use. What is going to stop the indicators that I use to stop working thus becoming ineffective.
My answer is; I do not have a trading system, but a trading method. There is a big difference. A trading method, allows for unseen things like yesterdays very choppy open. On gap days, as we had yesterday, the S&P moved up 6 or 7 points on the open and the Dow around 60-70 points almost immediately. It was catching up to the futures which had already gone up substantially in the night trading. Most often, the gap gets filled, but the choppy trading action can occur when you have the two pairing back up to each other. They are temporarily out of balance and until they get rejoined, you can have opposing forces at work. Well, a system is going to take the trades without regards to things like this, where a trading method, is going to give it time to get back in sync. Many times 30 minutes is a good cooling off period. In yesterday’s case, that indeed was true, where the market started to flow better and trading price action was pretty typical the rest of the day.
To continue, a trading method uses discretion, but has rules and certain conditions need be met, before initiating a trade. A system is just going to take the trade without regard to conditions. It is trying to remove trading emotion, which in many cases, does just the opposite. You end up putting your faith in something that you have no control over. Many traders abandon systems as draw downs eat away at their equity, which is where the added emotion comes back in. When do you throw in the towel or do you keep trading only to blow your account out, thinking that your trading system is going to make a come back. The whole thing is a big trading bummer for most.
In the above, you are not learning how to trade but putting your faith and trading future in the hands of a system that showed great results before only to leave you high and dry now.
That is no way to meet your trading goals and dreams. I will continue with this and other questions latter tonight or as soon as I can.
The markets are closed today, a legal holiday, so I will get right into where I left off yesterday.
Fear and “Day Trading” do not mix. The successful trader needs to find himself well before he sets out to trade the emini market, stock market or, forex markets. If you wait until you are trading against the professionals, you will wish you had not. The best way to get a handle on fear and trading, is to face it, head on. Write down, what it is that you areafraid of while trading. Lets give it a try.
Your list may include things like this; * I am afraid of getting stopped out * I am afraid of missing the big move * I am afraid of not hitting my daily goal * I am afraid of losing money * I am afraid of being wrong * I am afraid of being a failure before my friends * I am afraid of never making it as a successful day trader.
I could go on and I am sure you could find a bunch more. Those were a few off the top of my head. Write down, what your fears are as they relate to day trading and then you will be able to address each one of those and take concrete steps to overcome them.
I will break down the list above. I am afraid of getting stopped out. OK, first you need a plan, method or system of some kind to follow. I don’t recommend systems, because the markets are every changing and systems tend to fall in favor and out of favor, as many traders abandon them as soon as drawn downs hit, so a trading method is better. After you have that, learn it, get inside of it, take it apart and put it back together again to find out how best to make it work for you. When conditions call for a buy, place your order, set your stop and follow your method. Trade by exception as I have said, you should let the trades come to you. This is what you can do to overcome the fear of getting stopped out. Get educated, calculate your risk, see your reward and place the trade. You should have traded it successfully in practice sessions, which will give you confidence when you trade live. Let me say this, you should trade at least two weeks and make money each week. As a day trader, trading short-term swings, you should make money 8 or 9 days out of 10 before you trade live. If you can not do this, save your money. You are not ready. It takes time to get to this point and many are in too much of a hurry. Think about it. If you lose your trading capital, you die, just like blood to the body.
Fear; I am afraid of missing the big move. There will be others coming soon, don’t chase the markets and don’t be anxious. Let the conditions set up or forget it. Don’t feel you have to take a trade, there is no rule and if you have one like that, get rid of it. If price action says no, just wait. You need to know what it is that you are looking for. If you don’t, it will create fear and indecision. Don’t force the trade, it should come natural to you. If it doesn’t, do not trade it. You need to be relaxed, not tense with sweaty palms. If this is you, don’t trade, you are not ready. Practice taking trades where it seems natural to you. Recreate the environment that this is real, imagine, that you are trading real dollars and you are looking for a method setup. See yourself as it will be, when that time comes. This is like mirroring the environment before it actually happens. You will get a lot more out of these sessions like this. Also, do not take any trades for fun or just to see what will happen. That is useless behavior. Once you know how the trading platform works. respect it and take any practice trades as though they were real, period. When you book a few weeks of profit, you can ease into the market at the smallest contract size only and work up from there with market driven profits, even if you have a $25 or 50k account.
Fear; I am afraid of not hitting my daily goal. Don’t be afraid of something that has not happened yet, if you are not prepared, then you need to take that hesitation as a sign you need more time. Most traders believe they are ready well ahead of the actual fact. Don’t be one of them, keep your assets safe until you know what you are doing. If you go for the, “on the job training approach”, you will drain your account, for sure. The ratio of traders that are actually able to do this is very small, 5%. That is one in 20 traders. Some say that it is 10% but those are traders who may just be getting by with a slight profit, not exactly anything you could spend. Traders who make good money year after year are as small as, 1 in 20. What are you going to do different that puts you in that small minority. Be willing to work hard, practice and get to know how price action works. Reading the charts without indicators and understanding why they are making the moves they do. We need to have a respect for the markets, but not fear them. If you don’t respect it, it will strip you clean and you will only be left in confusion.
Fear; I am afraid of losing money. If that is the case, you are not ready, period. That kind of fear will make you do all kinds of strange things. You will get out, only to see the market rise, get frustrated and jump in at the top only to see the market fall before you eyes. You will then wait for what looks like a good counter trend trade and it will roll over on you continuing the downtrend, you will never get close to being successful if you have this emotion, for this reason. Don’t trade with scared money, get in a better financial position so that the loses do not affect you, free yourself from this and you will have a chance to unleash your new talent.
That has to it for now, I will continue tomorrow from here. I hope this is helping my readers, I welcome any feedback or questions.
Today is Tuesday, October 13th and below are the turning points for today’s session.
Just a brief note, we could be making new highs in tomorrows session, but remember to always look both ways, you would not want to get hit. That is what my mom always told me growing up. Little did she know that can be applied to day trading. Be careful not to form to strong of a market opinion. That could really kill you one day, no kidding aside.
Tomorrow’s session may be going higher, but I need to leave my mind open for any directional change that may take place. If I get stuck on only thinking in one direction, BAM, your dead, or seriously injured. Be careful and look at both sides of the market. In the long run, you will never become surprised about a move that came out of nowhere. I have heard of traders say, that was one of the key turning points in their career as a trader. When they started to see both side of the market, looked at price action objectively without bias and had a plan for both, should a counter trend reversal takes place. That is the right attitude and approach. Anything less than that, you are only going to get hurt, don’t let that happen.
The reason’s for this is really amazing. You would be so surprised at how powerful the mind is. The power of suggestion has the ability to blind you from all reality and that is the truth, I have lived it first hand. You will not see the obvious trades right in front of you, if you have told yourself, “this market is going up, I know it”. Well, you could know a lot of things, but you may be wrong about this one, then what. Do you have the mental capacity to be aware of what exactly you are doing and take the appropriate steps to STOP and readjust yourself to the pure price action at hand. Well, if you don’t, it is only going to be a matter of time before you hand your account over to other traders who do have the ability to do just that.
Your trading system or method may be very good, but if you do not train yourself to relax, calm down, realize what you are doing and look at price action objectively with an open mind, you will have the tendency to BECOME BLINDED by what you think you see. If you are the type of person who hates to be wrong and has trouble admitting it, boy are you going to get hurt. The trading markets have no mercy for traders like that. Do some searching, inside yourself and see if you have tendencies like this. If you do, you would be well served to address this before you continue your trading adventures. Failure to do so, will not bring you the recognition as a successful day trader that you aspire to become, but part of a statistic that adds new members to it ranks every day, ACCOUNT CLOSED.
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