Day Trading Profit Secrets – 10 Tips to Manage Your Trading When You Are Having a Bad Run
http://SatelliteTVforPCelite.org -
Day Trading Profit Secrets – 10 Tips to Manage Your Trading When You Are Having a Bad Run – We all enter day trading for the profits promised in the seminars, right? But what do you do when your trading takes a turn for the worse. It is critical that you manage this phase of your trading, because if you don’t your trading career will be short lived.
You’re trading for a few weeks or months, its all going quite well, your winners exceed your losers and you think you have got a good handle on your trading.
1. Firstly if you are trading multiple contracts or large volume of forex, you need to pull back. Perhaps revert to just one contract. If you are only trading one contract it may be a good time to have a time out from the market.
2. Tighten up your stops. Sure you will be stopped out more often, but your losses are smaller. You will still have a similar number of wins
3. Reduce the number of trades you are taking. Over confidence results in over trading. You don’t have to be in every trade, there is a next treat trade just around the corner. If you miss a few so what.
4. A danger of managing a losing run is that you may start to exit your winning trades too early. If your trading plan says that you will take a profit at 1,2, 3 ATR-Average True Range. Then you must stick to that rule.
Taking profit from trades too early may give you a momentary sense of relief, at least you have made some profit. This is another recipe for failure. Your wins must exceed your losses, and if you take small profits then this won’t happen.
5. Sometimes the best thing to do is to close your computer, avoid trading for a few days or weeks. Use this time to revisit your trading study, read those important books again.
6. Do not under any circumstance increase your trading with the crazy beliefs that you will make back your losses faster. This is nothing more than gambling. It doesn’t work!
7. Learn and practice regularly a successful stress management system. It must be able to assist you …
Duration : 0:9:42
