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Showing posts from March, 2019

THE TRADER’S PSYCHE

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THE TRADER’S PSYCHE You know that you need a strategy. And you know that there’s more to trading than just having a strategy. In the previous chapter, you learned about the major mistakes that traders make, and you learned that your biggest enemy is not another trader, or market makers, or your broker – it’s YOU. And YOU are your biggest enemy because of your emotions. In this chapter, you’ll learn about the mindset and psyche of successful traders. Having a profitable trading strategy AND the right mindset will catapult you right into the 11.5% of successful traders we talked about earlier. In order to develop the right mindset, you need to know what to expect when day trading. Many traders mistakenly believe that trading will result in a consistentlyrising account balance, like having an ATM in their front yard. But you already know that losses are a part of our business as traders. There will be some days and weeks when your trading exceeds your expecta

SELECTING A TIMEFRAME

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SELECTING A TIME FRAME W hen day trading, you’ll obviously select a timeframe that is less than one day. Popular intraday timeframes are 60-minute, 30-minute, 15-minute, 10- minute, 5-minute, 3-minute, and 1-minute. When you select a smaller timeframe (less than 60 minutes), usually your average profit per trade is relatively low. On the other hand, you get more trading opportunities. When trading on a larger timeframe, your average profit per trade will be bigger, but you’ll have fewer trading opportunities. Smaller timeframes mean smaller profits, but usually smaller risk, too. When you’re starting with a small trading account, you might want to select a small timeframe to make sure that you’re not over-leveraging your account. However, when selecting a very small timeframe like 1-minute, 3- minute, or 5-minute, you might experience a lot of “noise” that is cause by hedge funds, by scalpers, and by automated trading. You might think that you see an eme