Truly successful day trading is dependent on ONE often overlooked factor. Strangely, it's NOT the specific market you choose to trade; be it forex, stocks, bond futures, options or any combination of these. It is NOT the timeframe, i.e. day trading vs. long-term investment. It definitely is NOT how much capital you have got in your broker account. And, strangely enough, it's NOT even how reliable your trading information is, whether technical charting or economic fundamentals, or some combination of the two…
As with most other areas of life, an excellent way to rapidly improve your Online Trading is to record your trades, review them regularly, and then make improvements based upon the lessons you learn and the feedback you gain.
Doing this will rapidly accelerate the speed at which you both learn and improve, be it forex, stocks, bonds or commodity options.
Simply because you CAN trade any financial market – be it forex, stocks, futures, or options trading – does NOT mean that you should be involved in trading several or indeed many. In truth, the modern trader is confronted with a wealth of diverse opportunities. Moreover, with the 24-hour forex trading now a reality, you can now trade virtually whenever you wish throughout the business week.
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!
In day trading, the ability to be independent is even more important than in other life arenas. That is because in the day trading arena, there is no such thing as “absolute truth” and there is no end of opinion, conjecture, rumor and fantasy. Hope and Greed play their part too, and overall create a landscape of illusion wherein a person with no independent opinion of his/her own will be swept away to rapid destruction…
