Â Â Â Â Â As the song lyrics go, â€œYou canâ€™t have one without the other.â€ Unfortunately, I had never heard that tune, and I was dancing to my own music. I moved to the beat of song titles like, â€œFlip Flop Strategies,â€ â€œNo Skill Thrills,â€ and â€œThe Easy Road Moola.â€Â My trading jukebox played all the wrong songs, and I kept inserting the dollars â€“ hoping to find that elusive hit, â€œLucky Me.â€ Â Of course, the song didnâ€™t exist, and eventually I found a melody that did. It came from a mentor and a good day trading program.Â In case you may be playing that same jukebox I played, unplug the thing, and I will share with you two day trading tips that I have learned.
Â Â Â Â Â Â Â First, discipline is paramount! Â If you are a potential day trader, there are rules you need to know to succeed, and discipline is huge. Â This is the same kind of discipline that is required to run a business. Â Itâ€™s focus and stick-to-it-iveness! Â You must control impulsiveness; you need self-control; any poor addictive patterns of trading behaviors are left outside the trading room; you donâ€™t wander from strategy to strategy (or worse, you have no strategy plan at all), and you keep your emotions in check before, during, and after placing a trade. Â Need an â€œacid testâ€ as to how you and discipline are getting along together?Â Take a look at your trading results. Â If things look a bit â€œiffy,â€ then stay with the long timeframes for awhile. Â Improvement will arrive.
Â Â Â Â Second, a subcomponent of discipline, is COMMITMENT. Â Day trading is a skill, and pausing to learn that skill will be one of the finest investments you will make for yourself, the lives of your family, and your continuing future years of trading. Â This is not a sideshow, a whim, a lark, a hobby, or a gambling occupation. This truly is a business (you may decide to form an LLC), and it will be one that â€“ quite probably â€“ will have a close association with you for the rest of your trading life.
Â Â Â Â I enjoy day trading, and I am pleased that you are considering the same path. Â Itâ€™s a tremendous feeling to know that you will have liquidity at the end of the trading day. Â No more sleepless nights! Â The returns can be greater (because you can trade several times a day), price patterns will form faster (I use three minute time frames), you will learn to respond to these signals quickly, and â€“ as a disciplined (thereâ€™s that word again) trader â€“ you should be able to leave less money on the table than with longer-term position trades. Â For me, I wouldnâ€™t have it any other way.
Â Â Â Â Day trading can bring great rewards, but those rewards are coupled with the prerequisites of discipline and commitment. If you are up to the challenge, then I wish you much success. Who knows, maybe the next song you play will be: â€œCelebrationâ€ by Kool and the Gang â€“ nice choice!
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