26 Key Points For Day Trading

1. Cut Losses Early.

– There are thousands of stocks and there are thousands of potential plays, do not sit in a stock you are losing in.

2. Be a Stock Sniper

– The Stock Market can be difficult to master if you do not pick out the predictable plays. Wait until you have confidence in your stock.

3. Do Not Over Trade

– Trading is more about quality over quantity, make your trades count. Just because you trade more does not mean you will make more.

4. Have the Proper Tools

-Make sure you are trading with the best Scanners, so you never miss a play.

5. As long As There Is Volume in the Stock Market, We Can trade.

– If the futures are green, we can easily go “Long” on our plays. If the futures are red, we have to look more into “Shorting”.

6. Practice in a Trading Simulator Before Trading Real Money

– Nobody is going to be great at trading without practice. If you want to be good at something in life, you need to practice, practice, and practice.

7. Have a Mentor

-Without having someone who has walked your path before and can help you reach your highest potential in the quickest time period, you will be wasting a lot of valuable time and can loss a lot of well earned money.

8. Find the Trading Strategy That Works Best For You!

-There are hundreds of ways to make money in the Stock Market. Find what fits you best.

9. Watch Live Trading Videos

Being able to watch a Pro Trader trade live and seeing how fast everything moves can prepare you mentally for when you trade.

10. Stay Passionate

– Having a passion to learn and want to become better is what is going to make you reach your highest level of success

11. Know the Best Times to Trade.

-The Morning Market 9:30am-11am and Power Hour 3pm-4pm

12. Have a Good Broker

– Top Brokers are Etrade, Interactive Brokers, TD Ameritrade

13. Lock in Profits When You Have Them

-I can not tell you how many times traders say I was up $1000 today, but ended up losing $200. Lock in your profits. It does not matter what you were up unless you lock them in.

14. Every 25 Cents Will Hold as Some Resistance

-Starting at $1 every 25 cents will be some resistance line which can turn a stock around.

15. Everyone Learns at Different Speeds

– Do not get discouraged if someone can pick up on trading techniques quicker. We all learn at different speeds. The most important thing is that you do not rush into trading.

16. Do Not Set Daily Money Goals

– Daily money goals will destroy your account. The Stock Market will not have the right conditions some day to reach your daily goal. Set bi weekly goals, this allows you to trade big on days you should and trade small on tough trading days.

17. Trading is Not Entertainment

– Stock Trading can change your life if you take it serious enough. If you only trade part time, act as if you do it full time.

18. Nobody Wins Every Trade

– Everybody will take a loss now and then. A loss is not a failure, a loss is a lesson to be learned. Limit your losses, by studying what you have done wrong.

19. You Do Not Need to Trade Every Day

– The market is a changing environment, some days there will be no good setups. It is okay to sit out and not trade if nothing is being predictable.

20. Adapt to the Market Conditions

– When the futures are red, look for “Shorting”. When the futures are green, look to “Go Long”. Everyday will be different in the Stock Market.

21. Do Not Trust Message Boards

– We all look at message boards, especially as a rookie to see what everyone is talking about. Do not trust what people say on them. They are all just trying to pump or crash the stock in their favor.

22. Have a Trading Plan

– Before you jump into a stock, you should know where you are going to buy, where you are going to sell, and where you are going to cut losses if you need too.

23. Always Set a Stop Loss

– Always have some sort of Stop Loss on your trade. Penny Stocks can move extremely quickly and if they crash, you want to make sure you get cut out of your trade as early as possible

24. Be Patient

– Be a Stock Sniper. Wait for your predictable trade, confidence is everything

25. Be Disciplined

– Trade your setups, do not chase stocks, do not buy out of greed, do not make stupid mistakes. After learning how to control your emotions, being disciplined becomes a lot easier.

26. Greed Will Be Your Biggest Enemy

– This one emotion will be stronger than the rest. Greed has destroyed rookie accounts and professional traders accounts. Do not lead greed control your trading.

 

3 Responses

  1. Aquaholic81
    Awesome read!!! The #1 rule is the hardest rule to master
    • Ben
      Everybody has different strengths and weaknesses I find it easy to cut loses quickly after educating myself to do that. My weakness is not selling while I'm up consecutively, if I did that I'd have 80% win rate. Good stuff tho in this list.
  2. A lot of truth mentioned here.

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