How to Day Trade

How to Day Trade and achieve emotion-Free Trading

Is there an actual method of achieving emotion free trading?

As soon as you put on a position, you immediately grow tense and fixated on the chart.

Are your fingers tapping and heart pounding nervously every time you are in a trade? You have just taken two losses and maybe this will be a third.

The market moves in your direction and all of a sudden starts moving back again. “I better close this trade with a profit (any profit) before it turns around and stops me out again.” Just as you close the trade for a pittance it moves in your direction and reaches your original profit target.

If the trade moves against you the stress is just too much and obviously not healthy. Extreme stress in trading is not a necessity. Do not feel that tension and stress are a part of trading that needs to be accepted.

Human emotion is one of the most complex and hard to control areas of trading. No trader or investor has been able to conquer the market without first controlling their emotions.

In most instances the need for money is what causes emotional stress in trading. Most people come into the trading arena with the idea that trading is easy, they really are desperate for a way out of their financial difficulties, or they would love to be able to live a better lifestyle, rather than their dreary 9 – 5 jobs.

To become a successful trader don’t start out thinking about the huge amounts of money that you can make but rather at trading well, and then the money will appear automatically.

The successful traders sharpen their skills continually and tirelessly. To reach the individual perfection is more important than any money for them.

The novice trader either earning, saving or borrowing money opens a new small trading account. He/she begins trading and in no time finds the account totally depleted. Now they think, “If I had a larger account, I would definitely be able to win with trading”. Many novice traders think that if their account was bigger they would succeed.

You may be surprised to know that if you have a large trading account it will make no difference to your success as a trader. You can achieve emotion-free trading no matter how much your trading account has in it.

You will notice when reading on the net that experienced or professional traders say never start trading with a small account as you will be trading with scared money. In other words, you will be so scared of losing your small account that you will be scared to pull the trigger. This then causes a vicious circle of take a losing trade or two and then being scared of taking the next one because you may lose again. You can be sure that will be a winning trade and you could have now been in profit. And so the vicious cycle will continue until you have exhausted all your funds in your account.

Now, let’s say you decide to start all over again with a bigger account because everyone says this is the reason you are failing at trading. If you have not learnt the fundamentals of trading and got your emotions under control do you think that the larger account will make any difference?

Let’s move onto some important factors to learn How to Day Trade.

Discipline and patience.

When you demo trade with discipline and patience you build confidence into the daily routine of trading. You create a habit of trading with discipline and this becomes completely natural. When demo trading a strategy or technique, your aim should be to replicate real life trading as close as possible.

This will serve to greatly improve your trading confidence and belief over time, and this will help you towards experiencing emotion free trading.

You will be able to write up a trading plan, knowing what your risk is and what drawdown you can expect, so that if you hit a losing streak it will not be anything new. Once you have your risk reward worked out, it is just so much easier to watch a trade that’s going against you, when you know that you will make the money back (and more!) pretty soon, trading the same way. How powerful would that be????

If you are having a problem with fear of pulling the trigger, then you are not confident in your trading setups. The only reason you are not confident is because you have not demo traded your strategy sufficiently with discipline, and you have no expectations of your ultimate success, or failure for that matter.

If you have not focused on ONLY your strategy while demo trading, and been continuously learning from both winning and losing trades to become more effective, then you cannot feel confident and experience emotion free trading. It wouldn’t matter if you had a small trading account or a large trading account.

When it comes to market history, there are only two choices: trading with awareness of it, trading in ignorance of it.

I hope you enjoyed this article on some important factors regarding How to Day Trade. On this site you will find some really good strategies to assist you to get going with your demo trading

Lots of luck!