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Day Trading Education

THE PROS AND CONS OF DAY TRADING

Day trading is somewhat of a natural progression for many enthusiastic longer term traders. It provides a way to remain active in the markets on a daily basis, fast results and the potential to make substantial profits. But as with anything else, where there is opportunity there is also risk. Without a plan and discipline, even a relatively well capitalized account can be torn to shreds in a very short space of time.

What many people don’t realize when they start out day trading is that the most important aspect of success is constancy. True, people strive to become “consistently profitable” but the way that they go about it often tends to be less than ideal. It’s about getting a routine right then practicing it time and time again to perfect it and not finding the “magic indicator”. And the trouble is that until a trader is able to take account of the nature of markets, they won’t truly understand which way is forward on the path to profitability.

WHATCHA GONNA DO WHEN THEY COME FOR YOU?

You see the thing is that most beginners don’t have a particularly great plan. They might think they do but until they actually try it out in the live market – in the line of fire – they won’t be able to see all the possible ways that the market could cause them problems and most importantly, how they will react to a situation. Part of this is about learning what will move the markets. Part of this is about addressing what to do in an emergency. Part of this is about creating a money management structure which says when to stop if a strategy keeps failing. Much of this is common sense, I would agree. However, until a trader experiences and actually understands their experiences, the chances are high that the trader won’t plan for certain situations.

At Premier Trader University we’ve been developing our trading systems for many years.  They are put to the test in the live markets and in all cases they’ve been tested in literally thousands of trades.  This means fully developed trading plans that have stood the test of time and just about every trading condition you can imagine.  A good starting point would be the PTU Trend Jumper trading system which has fully developed day trading trade plans for popular forex and futures markets.

CHOPPING AND CHANGING

Day to day, you can never really be sure of what you’re going to get from the markets. One day it could be directionally trending. Another day it could be balanced. Sometimes it’ll tag all your levels and entries perfectly. Other times it will seem like it couldn’t care less and in fact it’ll feel like it’s particularly trying to take you out personally. Different instruments may have slightly different traits but they can all without exception, make you feel like a victim – if you have the wrong mindset. Markets do change each day and heck, they can even change each minute sometimes. So by the very nature of the markets, a trader must see that their strategy will not work well every single session.

FIDDLING ON THE FLY

Without a strong plan and without the understanding that markets are always changing in their behavior, a trader is lost. They are lost because they have no frame of reference for whether what they are doing is incorrect or whether it’s just one of those days. Usually, the instinct to fight takes over and in the face of multiple losing trades, the trader will take a shot at a different strategy – an idea that’s not been researched, tested and is likely to be emotionally charged in any case. Not the basis for a great tactic I’m sure you’ll agree. Uncertainty, market variability and the strong desire to succeed can be a disastrous combination.

GROUND YOURSELF

By being involved with guys like those at the Premier Trader University, who have many years of day trading experience and understand what really makes a difference in the pursuit of success, you’ll understand the importance of rules and process. By creating strong foundations that you can build consistency upon, you’ll start to make great strides in your trading performance. Now I know that many love to read about super indicators and 10-step systems to assured success, but the truth of the matter is that creating and following a strong plan is perhaps the most important aspect to trading. But results aren’t always going to be perfect of course and when a beginner does experience a difficult period, having the ability to lean on someone who’s “been there and done that” can be absolutely priceless. But whatever you do, have a plan and follow it.

Trade well.

Check out Part 1 of Day Trading for Profits:

And, Part 2 of Day Trading for Profits: