Day Trading: The Danger Of Over Trading

A danger in day trading is jumping on low quality setups. It is extremely common, and not just with beginning traders. it occurs at many levels of trading expertise, even on professional dealing floors. It almost always happens when a trader has no established trading methodology. In other words, he/she looks at the market, performs an ad-hoc spur of the moment kind of analysis, and then puts the trade on as a result. Only when the position is live does said trader have lots of time to then see all the contrary indications to the trade!

That fact is that it makes excellent day trading sense to (a) have pre-determined rules for entering trades; conditions that you have tested repeatedly over a wide range of markets and scenarios and that you know works, and (b) stick to those predetermined strategies. This means that you actually IGNORE all ad-hoc trading opportunities that seemingly pop up everywhere. It's vital to recall this key trading truth in online day trading: there are ALWAYS trading opportunities; even more than you could remotely hope to profit from. Therefore, the key to successful day trading is to only take those trades where you are certain, as a result of your extensive testing, that you have an outstanding chance of success.

In other words, pick your day trading battles!

You can read the rest of this day trading article here.