If you are new in day trading or not yet got reasonable success then first you need to learn how to deal the day trading learning curve period without going broke first!
To begin with it is worth to note FEW MAIN REASONS OF FAILURE IN DAY TRADING;
Lack of capital, and incompetence amounts to 60% failures, and over trading results 90% failures.
Now let us understand the most basic price mechanism in stock market which always works in most of the times. Then I will reveal to you my golden rule to deal the day trading curve period without going broke!
Remember, stock just sold at a price is a history. Market Price is composed of current bid and the asking price. The balance between selling and buying VOLUME decide about the stronger pulling power that determines price. A sudden demand or burst of liquidation may enable us to form a new plan. Watch market index 100 and pattern at the same time. When we find a stock emerging into a new field it best to go with it.
My Golden Rule
There should be no haste as market will be there tomorrow in case today’s opportunities did not meet requirements of trading plan.
Anxiety to reach day target or to avoid losses would reduce profits it must be done naturally.
Few times market may not suit my tape reading style, then you must hold off until the character of market changes.
Become a Champ in Day Trading With the 4-Step Plan
The key to day trading is to permit myself only one of four possible outcomes for every trade I take.
BIG LOSS NOT ALLOWED
Always use strict stop loss points to minimize losses in your trades. You will lose previous hard work and hard earned profits, simple due to one big loss.