Day Trading Tips To Turn Amateurs Into Pros
Author: Dr.BarryBurns Total views: 15 Word Count: 535
Day trading can be a thrilling way to make money. But it's more challening than most beginners think. Here are some day trading tips that can help the new trader as well as the more advanced trader to achieve your goals faster.
Tip #1: Do not over trade. The market is a random walk most of the time, meaning that it's moving around without a pattern that can forecasted. Retail traders taking small positions in the market cause this meaningless movement.
These amateurs do not affect the long-term movement of the market. The professionals, with their large volume and their willingness to hold positions longer, are the ones who create sustainable moves in the market that can provide meaningful profits.
Some people are attracted to day trading for of the excitement of the business and the potential for fast money. This attitude sets one up for disappointment. Day trading does not have the energy of a video game. Professional day traders stay on the sidelines for waiting for a high-probability trade to set up. They trade less frequently than the amateurs believe.
Second: The trend is your friend ... sometimes.
The truth is that the trend is a fair weather friend!
It's true that the trend is your friend early on. But trends get exhausted and end. It's more accurate to say: "The trend is your friend, until the end."
There are 2 times to trade when you can put stats on your side:
Early in a new trend.
Late in an old trend.
Taking positions at these 2 times put the stats of the bell curve on your side.
Third: Join free trading rooms for day trading tips but do exactly the opposite of what you hear!
The biggest benefit usually doesn't come from listening to the room leader. It often comes observing the chatter of the participants while they comment on what trades they are getting into.
As you may guess, the majority of the time they are completely misguided in their approach.
They expose the collective thinking of the unprofitable amateurs. It's scarey to notice how the amateurs all reason alike when it comes to day trading. If you watch them in the rooms for several months you'll begin to identify clear patterns of things they do wrong over and over again. Do the opposite and profit.
As an example, one of the most common problems amateur traders have, is resisting the urge to fight the trend. You'll often hear comments such as: "The market can't go any higher than this." "This market just has to turn around at this point." "The market is definitely way over-extended now."
It's uncanny how the retail traders as a group, seem to be determined to find tops and bottoms. For some reason they have a hard time trading with the trend and seem obsessed with trading against it. Of course this can spell big money for you. Once you know what the amateurs are doing, you can make money be trading against them.
Day trading can be extremely rewarding, but to be successful you must stand aside from the masses and avoid the herd instinct that drives so many. These 3 day trading tips can help you be among the minority who succeeds.
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About the Author
Dr. Barry Burns is the president of Top Dog Trading, writes a day trading blog and offers a free 5-day video course which provides day trading tips. He has spoken at DayTradersUSA, "Elite Masters of Trading," and Traders Expos.
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