Here’s a mini guide for succeeding.. Have nerves of steel. Don’t invest in something ridiculous. Be OK with losing it all (which, by the way, is almost impossible unless you make basically horrible trade after horrible trade after horrible trade.) And it helps if you only use 2x margin, so you can turn your day trade into a swing trade if you need to hold it a couple days without getting a margin call. So try not to invest 4x DTBP (Day Trading Buying Power). 2x is fine.
Set up a goal. If you want $1,000,000 within a year and you only have $5,000, then know what you need to do to make it happen. Visualize it and do it. Know that in that scenario you’d need to have gains equal to 56% of your money every month. And how can you make 56% of your money in a month? Well there’s a number of ways. You could do one trade that made 56% profit. Pretty unlikely. You could use 2x margin and make 8 trades a month that each gain 3%. A lot more likely.
Stocks go up. Remember that. They either go out of business or they go up eventually. If it’s going out of business then what the heII made you think you could hold it long? And if it’s going up eventually then why the hell would you short it? DON’T short stocks. Ever. Now SOMEONE has to short stocks, because it’s healthy for the market, it’s healthy for us. But this is a mini guide to success. And not every one will read this, so for the few who do read this, just take the advice and you will be better off. and if you see someone who does short stocks, let them short them. Bulls money comes from some where, and through a chain of events it’s usually from bears, or from the consequences of bears reactions. Just about every trader I know who is always bullish, is way more successful than every trader I know who is usually bearish.
Your money comes from somewhere. Every one can’t win. Well….they could but…I’m not getting into that because that’d be a much longer response here. But typically… If there’s only 10 people in the market and 5 of them had a combined profit of 5 million. The other 5 probably had a combined loss of 5 million. Just throw that nugget in the back of your mind and it will help from time to time, especially when you’re reading responses/ideas from people on trading sites.
It helps if you’re stubborn. It’s ok to want to win every single time. You SHOULD win every single time. Don’t invest in something stupid and you shouldn’t lose. I’ve had to hold a day trade for 2 weeks before just to get my profit. But you know what? I made my money. And I factored in the difference and made double on the next trade. If you make money every time, or just about every time, that’s way better than going back and forth, losing money, making money, losing money, making money. Right? Right.
If you go long on a stock and 10 minutes later it drops 5%, so what? Don’t be concerned about that. Be concerned when it goes up the 3% you need it to. It’s more than nerves of steel. It’s more a…look it straight in the eye and say “fck you, go down more, I dare you.” kind of thing. And if it does? Say “Fck ya, i don’t care, I’m going to go have a big juicy burger for lunch, you do whatever you want market..”. Go take a drive, go have some food, literally forget about it and when you get home it’ll probably be up already waiting for you and saying sorry. And if it’s not? Fck it.
And likewise, If a stock goes up 20% after you sold it for 3% profit, then who cares? That doesn’t concern you any more because you sold it already. Don’t hang on to those things. That’s like playing a slot machine in the casino, and then after you get up, you’re waiting to see what happens when someone else gets on it. Who cares? Get back to work, and genuinely hope the next person does good. Don’t dwell on how you could have done better. Because you can almost every single time have done SOMETHING better. But that’s not the point. The point is meeting your goal. You don’t need to do better, just stick to your plan and make your dreams come true. Because if you dwell … they’ll only alter future decisions because you’ll think “Well maybe i’ll hold it, because that one time….” You need to seriously not give two shlts about anything that already happened.
Focus on what’s on your plate right now. Focus on the now. And when the market closes, you’re done. No reading/watching news. No becoming obsessed and tweeting about stocks all night. When the market closes, you’re jobs over for the day. Get up an hour or two before the market opens and start your research. Then you’re jobs done at 4pm.
That’s all I have for now. But don’t be worried. You CAN make money consistently by day trading/ swing trading. People who make millions are out there. I guess we just don’t say much. We just don’t tell you our stories. Sometimes I wonder if I’m the only one who does well, because there’s COUNTLESS negative stories about how day traders can’t make money. I was even searching google tonight for “day traders who made millions”, and I can’t find any thing. I found this article.
Don’t be discouraged. And once you do good, the market can never get it back. Because you should be taking money OUT for you. Make a million, take $200,000 out. Make another 3 million, take a million out. Make another 5 million, take a couple million out. And once that money is out, you never put it in again. If you lose it all, you keep your millions. But you should never lose it all, i can’t even fathom how it’s possible unless you’re doing something ridiculous and going off the grid because you have no focus.
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