Positive Goals

One of the benefits of this blog is that I get to write down my thoughts on trading, which in turn helps me to solidify the point I am trying make or teach on in my own trading and hopefully yours too.

Like no other business, in day trading you have to keep a positive goal in front of you at all times. What do I mean by this? Trading requires much trial and error before you hit the success path which can take quite a toll on your emotional health and mind-set, not to mention your wallet.

Mistakes and trading errors are necessary information you need to make the proper corrections to a successful trading career. Too many times though it is the mistakes and errors that the would be trader makes that causes him or her to call it quits.

With a positive goal in front of you at all times, you can overcome all the pitfalls that trap so many traders. A positive goal would be that you know with enough trial and error you with come up with a winning trading strategy that will give you a lifetime of unlimited income and freedom.

Keep putting that goal out in front of you and you will breakthrough the learning curve that ALL successful trading have had to overcome.

Chat Rooms 12/3/09

I am amazed at the number of people that are in trading chat rooms that take so little action on the trade set-ups that are available all day long.

I use a program that I would say is as good as you could Have . It gives amazing signals and is almost brain-dead easy to understand and execute. So why so little action taken when it comes to trading these great signal in a chat room?

I personally think it is the fear of losing money and being wrong when a trade goes bad. These are the two biggest hurdles to overcome for any new trader and even season veterans.

These two fears block out valid trading set-ups because you are too focued on how not to lose money which there is no trading set-up for that except not to trade at all. You narrow your focus to the object of your fear.

We will talk about in future blog post how to overcome these two fears that stop traders dead in their tracks and get into the fast lane of unlimited trading profits. Sound like fun.

11/30/09

Practiced on the sim account today. It is very important to stay true to your trading plan as much as possible, even on the sim

Too many people fudge on their trading and trade on a simulator much different than they would if they were using real funds. The main goal using the sim is to quantify your trading strategy and see if you can make money with large enough sample size of your trades.

If you can do this right, you will be able to set a more exact trading plan and strategy and take the fear and guess work out of your trading.

Missing a Trade

One the biggest frustrations for daytraders is missing out on trades that would have been a winner. What I have learned is that if you have a sound trading plan with proven entry and exit set-ups you do not need to fret over the missed moves

Many, many trades are missed because they don't line up with your trading plan and that is okay. You can't be running after every market move and follow you plan at the same time.

Stick to your proven trading plan and your success is certain.