Drastically Improve Day Trading Results With These Practices

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These day trading practices have the potential to dramatically improve results. Day trading is a mentally engaging process, and these practices are designed to keep us alert and focused, yet relaxed and confident. All key ingredients for trading well and consistently.

The practices discussed below could also be applied to swing trading. The processes are implemented any time we are scanning for or could potentially make trades. While everyone day trades differently, opportunities don’t last long, so day traders must be ready to pounce when opportunities arise yet also be relaxed enough wait for those opportunities.

There are a few things that get in the way of being confident and relaxed enough to wait, but also being confident and ready to pounce when a trade signal occurs:

  • Not being in the correct "Trader Mindset." The trader mindset is the part of ourselves that did all the research on trading and wants to be profitable. It has developed strategies and protocols for trading, but it can easily be thrown out of the driver seat by other more emotional parts of ourselves when money is on the line. Our fear, anxiety, greed, perfectionism, laziness, or gambling mentality (and many other parts) don’t go away just because we have a strategy. And these parts can take over while we are trading and cause all sorts of problems if we don’t have a plan for dealing with it.
  • Expecting something from a trade or for the day. We should test our strategy enough to know it makes money over many trades. All we need to do is follow it, and we can expect profit over many trades. Yet, if we start expecting that we will make money on this trade, or that we will make money today, we are setting ourselves up for disappointment and potential trading problems.
  • Not having a morning routine that gets us into our trader mindset. Not preparing ourselves adequately for trading is like coming into a game, cold, after sitting on the sidelines. Every day, we are coming in cold. Our mind has been elsewhere, so we need to prime it for trading again. Some days its easy, others not so much. Establish a pre-trade routine to reinforce the trader mindset and give yourself the best chance at success. Without a morning routine re-establish the trader mindset, any part could be in the control—the perfectionist, the gambler, etc.
  • Not talking our way through the price action and what trade scenarios could develop. If we aren’t engaged in the trading, and planning out trades as the price action unfolds, we are likely to be slightly slower than the traders (and computers) that are. We are more likely to enter slightly late, get out slightly late, miss opportunities completely, or take impulsive trades because we haven’t affirmed what we actually should be doing or not doing.
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Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using ...

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