My goal is to inspire you to become one of the elite who makes quick fortunes trading on the stock market, yet time and again choose to sleep safe in your bed, eat well and live well.
In my company, I have been trying to invest my wealth in things that will help me stay alive, focused and will make me happy.
This is how I stay sane: my true identity, my passions, my friends, family, and the pleasures of life.
Life is far too short to spend it worried or scared. All I have is my health and happiness and I need to take care of myself and the people around me.
I want to share my knowledge and money with you so that you can enjoy the good life just like I do.
Losing money in the markets is something that every day trader has to deal with. However, I have noticed a few ways to make the most of a bad day.
Below, I present to you a brief overview of the mistakes that I have seen day traders make time and again, and how to avoid them.
Tip #1: Stop losing money!
I understand that when you start trading stocks, you lose money all the time. Some day traders call this losing “friends”.
But if you lose money for too long, you will end up with a full list of bad friends.
It’s better to lose a lot of money on your good friends than to lose them all in one day by losing track of them.
If you spend all your time trying to close a losing trade, you will not have time to trade in the winners.
But if you invest a bit of time to close a losing trade, you will have more options in the future.
Think about it this way: you do not want to lose all of your good friends at the same time.
You want to lose one on one and get a new friend as soon as possible.
On the other hand, if you invest a bit of time to close a losing trade, you can pick the next one very easily and move on to the next one.
So it’s always a good idea to stick to a plan.
This is why I prefer to focus on trading and let others worry about the house.
Tip #2: Stop losing time
As a day trader, you do not have much of a life. In a way, it’s like work, only a lot more boring.
As a trader, you have to choose which trades you want to make and which to abandon.
Imagine you’re taking a few sick days from work. When you’re on the first day, you are thinking about what you could do with the time off.
This day is long gone by the time you get back to work.
Likewise, you should make a few good trades and exit a few bad trades early, then spend your time not-spent on planning your trades, researching stocks, reading reports, analyzing your trades, saving your entry and exit point, etc.
If you make a couple of good trades early on, the rest of the day is completely saved.
The same is true for trading. If you spend all your time and energy on closing a losing trade, you will end up with a full list of losing trades, and maybe one good trade.
The result is that your portfolio will collapse and you will not have time to trade the winners.
As mentioned earlier, you must forget about the day traders’ mentality and focus on the here and now.
If you find yourself losing sleep because you spend all your time focusing on your portfolio, closing a bad trade, and trading the winners, it’s time to focus on something else.
And as far as life goes, that something else can be just about anything. There’s no need to lose time on sleep.
There’s no need to lose time in your social life. If it’s not already obvious to you, what you are looking for is not something that can be replaced with any other thing.
Just by taking a step away from your trading desk, you can remove yourself from your business and focus on something else.
You’ll feel the difference and you will definitely feel more alive.
Tip #3: Stop being disciplined and start being random
It is always better to trade when you are not sure of your positions.
As a day trader, you have to be decisive, but if you are unsure of your positions, you are better off leaving it up to the random.
As you may have already guessed, I am referring to the random movements that can be seen in the markets.
Random trading is the only thing that matters in a volatile market.
It is always better to keep things simple and let the random move the market. That is the only reason you should invest in trading algorithms or simple day trading software.
It is the worst idea to put yourself in an environment where you are not confident.
Instead of jumping into a trade right after you create a position, you should be creating one after you have lost a few hundred dollars.
But because you’re not confident, you will keep creating a new position.
At some point, you will lose a lot of money and then wake up the next day, wondering what’s happening.
I’m not saying you should use complex trading software and algorithms.
Simple day trading software is fine, but don’t be so focused on the algorithm that you ignore what’s happening in the market.
I know, I know, we are supposed to follow discipline and consistency. As a day trader, though, it is better to follow the advice to use the random when you are not sure of your position.
On the other hand, you should stick to discipline when it is not in your favor.
When it comes to the “system”, you need to try and get into the habit of practicing the system, just like you need to stick to discipline when it comes to trading.
By being disciplined and disciplined, it will eventually help you develop a habit.