Part 3: Envying Other Day TradersProvided By Ultimate Trading Systems Which Pitfalls May Hinder A Day Traders Success?If you want to improve as a day trader, you must identify the mistakes you make consistently so that you can recognize your own pitfalls. To do this, look back at ten losing trades you've made in the last few weeks. Can you find similarities? Look closely and be completely honest with yourself. Part of being a good day trader is being able to look at things with a clear eye and seeing what's really there, not what you wish was there. Now here's the harder part successful day traders know: Look back at your recent successful trades and find the ones that succeeded only by luck. How would they have turned out if you hadn't been lucky? What were your mistakes with those trades? Identify the two most common mistakes day traders make. Identify your most disastrous trades and identify the mistakes you made with them. day traders must keep their psychological and emotional soft spots in mind at all times while you're trading. Your goal as a day trader should not be to trade perfectly all the time, to win on every trade, or to be perfect in any other way. When day traders put too much pressure on themselves to be perfect they find themselves making lots of mistakes. Besides the fact that no day traders are be perfect, there's also the fact that you don't need to be perfect. day traders can make amazing amounts of money in the markets by being good, consistent day traders. Day traders, are richly rewarded if they do their job consistently and properly. Day traders will find themselves doing far better than 99 percent of the other people trading stocks in the market, not to mention money managers, analysts, and other so-called experts. Instead of perfection, a day traders goal should be to control the emotional barriers to their success. A long term day traders success is achieved through consistency: consistently taking small losses and larger profits, consistently rejecting trades that are too risky or that aren't based on good reasoning, and consistently doing what they know is right instead of acting against their better judgment. Day traders know that consistency is a discipline, and it will serve you well in life as well as in trading. The purpose of identifying your psychological soft spots is not to make day traders feel deprived or disadvantaged. All day traders, even the best, have weaknesses - they just recognize and control those weaknesses. Instead, the purpose of getting to know your personal pitfalls is to develop a realistic sense of your strengths and weaknesses so that you can recognize mistakes before they happen. Being realistic - about yourself and about the market and the trades you make - is the way that day traders succeed.
copyright 2005 Day Traders
|