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TEN COMMON DAY TRADING MISTAKES

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TEN COMMON DAY TRADING MISTAKES Day trading is tough. Many popular markets are zero-sum games, meaning  that for every winner, there’s a loser. Other markets, such as the stock  market, have a positive bias, meaning they have a tendency to increase in  value over time, but you may rarely see big moves in any one day. And the  whole point of day trading is to close your positions each night. Most day  traders lose money, in part because they make obvious, avoidable mistakes. This list of ten mistakes will help you avoid the most serious ones so that you  can be more successful from the get-go. Following them is no guarantee that  you will make money trading, but it will certainly reduce your risk and  improve your odds. And that’s half the battle. Starting with Unrealistic Expectations Most day traders lose money. Some research shows that 80 percent of day  traders wash out in the first year. Brokerage firms that deal with day traders  are constantly figuring out w

MANAGING THE STRESS OF THE MARKETS

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MANAGING THE STRESS OF THE MARKETS Day trading can be a ruthless business. Some days, you don’t find any  trades worth making. Other days, you find trades, but they don’t work  out the way you want them to. And some days, there are too many good  trades, more than you can possibly make, and so you watch profitable oppor tunities slip away. When you’re working with real money, it can be too much  to take. In a money management or brokerage firm, traders have tremendous cama raderie. They are working for the same employer and need to stick together  to blow off the stress. What do you do at home, though? How do you keep  from panicking, getting depressed, or otherwise letting this business hurt  your profits and hurt you? If you’re going to day trade, you need to understand the very real physical  and psychological stresses that the market pushes on its participants. In this  chapter, I offer some information and advice that can help you avoid a crisis. First, t