Looking to increase the bottom line in your day trading business? Avoid falling victim of common mistakes by following these 3 simple rules and boost your day trading profits today!
1. Stop over-trading
That's right. We've all been guilty of this. You had a great morning, you locked in a sizeable profit in the first two hours of the trading day, but now you're starting to find reasons to place trades in the mid afternoon.
Try to avoid using your morning profits as a "buffer" for trading less than ideal setups during the lunch lull. Next thing you know, you've lost your morning profits, added another $100 in broker fees on top, and now you're fighting to make it back.
Have the discipline to only trade your niche high probability setups, and watch your account grow faster.
My main trading partner Jason (our moderator "JB" in chat) is one of the most patient traders I know, and his success is attributed to to that. Since I have began trading with him two years ago I have improved my discipline, and become a better trader as a result. Surround yourself with successful people in this business who will teach you good habits and allow you to mirror their successful actions.
2. Stick to your trade plan
This one is pretty straight forward, I talk about this all the time on my live desktop stream: Have a trade plan, and stick to it! Don't add to a losing position and risk compounding your losses when you are wrong unless it is part of your specific trading plan.
By implying a trade plan you know exactly what you are risking on every trade that you make. By having a set risk level (or a stop loss), you can help eliminate the emotions from your trading by knowing exactly what you are risking and limiting the loss by having a plan in case the trade doesn't work. Prepare for every situation with a plan, and only take risks that you are comfortable with.
I'm sure you've heard this quote before, "No plan, no trade" - I couldn't agree more. Start trading with a plan! Trade only high probability setups, ditch the losing trades quickly, and let the winners work for you.
3. Find your niche - trade your niche
Here's the thing I always tell our traders: Find what you are good at, and stick to it. For me, personally, I'm good at trading the morning momentum, then I like to slow down trading during the lunchtime period (with the exception of holding bigger picture trades), once 1pm hits, I'm starting to scan the market for end of day runners.
My niche has always been trading the morning momentum stocks, sizing in short on parabolic/overextended charts, and playing end of day breakouts. I also have great experience in scalping stocks from my prop trading days in my early 20's - but that's for another blog post. Anything I do outside niche and can be considered as over-trading.
If your niche is trading small cap momentum stocks and you find yourself trading UVXY or AAPL just because they are moving - You may find yourself donating hard earned money back into the market out of boredom.
The bottom line is simple: trade your niche, trade your plan, be disciplined and watch your account grow! Feel free to comment/discuss, and as always, feel free to reach out to me via the contact form on our website.
See you all tomorrow on the LiveStream!
P.S. - Grab our free webinar video on tips for account building and learn about our risk management and trading techniques!