Its’ not a competition, so don’t try to beat the market.
I expect to lose, in fact, I expect 3 out of 10 trades to lose, just because. No reason in particular. Nothing I did wrong, simply because that is the odds. Do you enter into every trade thinking that you have to win? If you’re the kind of person who doesn’t like to lose, because you take it personally, than you are going to have a really hard time Day trading. You will have to work hard to be a disciplined trader, taking your ego out of the trade.
In order to be a disciplined trader, you need rules and structure. You need to be prepared every day. The key is to know where you are getting out of a trade, before you enter the trade. You need to have small stop losses in place knowing some trades will get stopped out. If you are not prepared to lose, than you will have a major problem accepting the loss. Once you prepare yourself by putting in your stop loss, you have succeeded in separating yourself from the trade. You no longer have to make a decision about where you are getting out. You have made a trade purely based on risk versus reward. By having the exit strategy, you are in control of this trade and now you can move onto the next high probability trade.
Happy Trading, The Stock Whisperer
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