Day Trading Profit Secrets - Your Goal is to Make Money Isn"t It!
Inexperienced day traders or those who make little money from trading often get caught up in the folly of trying to predict the future.
In early 2009 the bears were full of gloom and doom.
But by April the market had turned around.
In early 2010 the bears are out in force again some predicting the end of our financial systems.
So how do you make your trading decisions? Sure the world governments are pulling back on spending and handouts, sure there are economies failing such as Greece.
But for much of the western world life goes on.
China is still in a massive building boom which props up much of the worlds resources.
The fact is that whatever happens to the world there isn't a lot we can do about it.
We can read the financial papers, read the blogs and online newsletters and we can try and use our crystal ball to see where the market will go.
But, it really doesn't matter for traders.
Why? Because we can trade both long and short.
Even in boom times the market made retracements and it was easy to get cleaned up if we weren't careful.
The same applies now, I agree that we need to apply a little more caution, but this is a good thing.
Boom markets can cause complacency, we can start to think we are masters of the trading universe, until we are proven otherwise.
Your mantra should be.
I don't know what the future will be, but I am trading to make money, not to be known as a crystal ball gazer! If you trade as same kind of an ego trip, then that ego will be deflated faster than a balloon at a children's birthday party.
I assume everyone else is is trading to make money.
Your attention should be on the price action.
What are the charts doing? Are the daily charts in agreement with the weekly chart? Is the 30 minute chart in agreement with the 4 hour chart.
I have a personal rule that if my 1 hour or 4 hour chart is moving up or down then I prefer to trade the 30 minute chart in the same direction.
I know everyone doesn't agree with this but it just seems that the probably of a bigger run is likely if the short term agrees with the longer term.
However you do need to on the lookout for key reversal patterns.
This is where the market has exhausted itself in one direction and is ready for a correction.
I find it best to avoid most of the media speculation about the market.
If you track these commentators for a while you usually find they haven't got a clue.
In early 2009 the bears were full of gloom and doom.
But by April the market had turned around.
In early 2010 the bears are out in force again some predicting the end of our financial systems.
So how do you make your trading decisions? Sure the world governments are pulling back on spending and handouts, sure there are economies failing such as Greece.
But for much of the western world life goes on.
China is still in a massive building boom which props up much of the worlds resources.
The fact is that whatever happens to the world there isn't a lot we can do about it.
We can read the financial papers, read the blogs and online newsletters and we can try and use our crystal ball to see where the market will go.
But, it really doesn't matter for traders.
Why? Because we can trade both long and short.
Even in boom times the market made retracements and it was easy to get cleaned up if we weren't careful.
The same applies now, I agree that we need to apply a little more caution, but this is a good thing.
Boom markets can cause complacency, we can start to think we are masters of the trading universe, until we are proven otherwise.
Your mantra should be.
I don't know what the future will be, but I am trading to make money, not to be known as a crystal ball gazer! If you trade as same kind of an ego trip, then that ego will be deflated faster than a balloon at a children's birthday party.
I assume everyone else is is trading to make money.
Your attention should be on the price action.
What are the charts doing? Are the daily charts in agreement with the weekly chart? Is the 30 minute chart in agreement with the 4 hour chart.
I have a personal rule that if my 1 hour or 4 hour chart is moving up or down then I prefer to trade the 30 minute chart in the same direction.
I know everyone doesn't agree with this but it just seems that the probably of a bigger run is likely if the short term agrees with the longer term.
However you do need to on the lookout for key reversal patterns.
This is where the market has exhausted itself in one direction and is ready for a correction.
I find it best to avoid most of the media speculation about the market.
If you track these commentators for a while you usually find they haven't got a clue.