Day Trading has with it many rewards if one can first find a good trading method that is consistent and straight forward. With a good consistent trading method you also need to have “the mind of a trader” to know what is expected and what you will be faced with.
Having a mindset that will be prepared for losses and gains and having the ability to put both of those into perspective is so important just to start with. Being unrealistic in your expectations of what the market can do for you is only setting you up for disappointment. It takes a lot of work mentally as well as having your plan of action to get into and out of trades.
How you handle winning trades is just as important as how you handle losing trades. Traders will almost always see their biggest losses just after they have had their best gains. Why is this so very common? If you think back on your own trading, you can many times see this to be true, because it is tied to human nature and most people tend to react in a similar fashion unless you prepare for it ahead of time, knowing this is true.
How you handle losing trades, is also a big issue that brings with it added trouble. It is not so much that a loss has with it a drag on equity, but that it can so easily produce more of the same if you don’t have a healthy mindset which says losses are apart of trading and this one loss does not define me as a trader. This is something I often say to myself to make sure I keep a healthy mindset and proper perspective. The opposite is a unhealthy, get even, take revenge, ego driven attempt to get back that which you just lost.
The mind of a trader will say to you, I can follow my trading plan and be content with what it brings to me today. If I trade true to my trading values, I will see a net gain in my trading account today. If I remain open minded to market direction, I will see a net gain in my trading account today. If I remain humble and don’t allow myself to be gripped or moved with fear, (fear of loss or fear of lost opportunity), I will see a net gain in my trading account today. If I don’t allow greed to take root in me, I will not give back those gains that came earlier and I will be OK and very content in walking away with those gains on the session and I will see a net gain in my trading account today.
So few people who take on day trading are able to meet the challenges. If you find out what the challenges are in the mental aspect of trading and spend just as much time on developing a positive practical approach to those challenges and then commit to have the mind of a trader that lives up to your reasonable expectations, you can do well, when its combined with a good working trading method that is price action driven first.
Trading indicators are tools to help you see what is already present on the trading screen. They can be considered training wheels for a bike. Learn to trade just as well with and without trading indicators and you will grow in your understanding of price action and what drives the market. Price is always the best leading indicator, but trading indicators are a reflection of price. Learn to trade based on price and you will grow in understanding and confidence.
With the mind of a trader, you can see and know with a high degree of certainty where the next move of the market can take hold as certain low risk area’s are presented. Knowing what other traders will likely do in mass is being able to understand where and when the likely path of price is headed. Positioning yourself in the likely path of price is what we do at Sniper Day Trading
We never have to know it all, see it all, be in it all, but only that small portion of what we understand at a given moment. That is all you need to have the trading edge and make it work for you.
It’s all about knowing and with that comes power. Power over hidden barriers that may be holding you back and power over a lack of knowledge in holding a good trading method that is consistent. We have all heard the term, knowledge is power, and in this case with what I have discussed above, is very much the case.
I hope I have you thinking beyond trading indicators in your quest to hold the trading edge. Holding a good healthy trading mind-set is really just as important as the trading method itself and with today’s article I hope that was brought to light.