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A Smarter Approach To Learn Day Trading

Let’s face it, if trading was easy then everyone would already be a millionaire! Just think about the plethora of day trading books, trading strategies and methodologies that have been released in the last decade. The fact of the matter is that trading is a very challenging endevour and you can not expect to learn it overnight or in a few weeks.

The last statement has a paradoxical element though. You can learn a day trading system in a few weeks. You can have clearly defined your rules including entries and exits. However, with most systems there are some discretional factors including support and resistance, fibonacci pivots, strong trendlines, etc. As your “trading detective” skills grow and you improve your trade selection, you can greatly improve your overall profitability.

One can learn day trading for a clearly defined trading system in a few weeks although it can take months to master patience, discipline, fear and greed.

As humans we tend to make emotional decisions and then justify them with logic. (All advertisers know this and profit from it). When you are a fearful trader you are hesitating to enter the market plus getting out too soon. As a greedy trader you are getting into the market without the ideal trade setup or going for too large a profit and losing on the retrace.

Recognizing these tendencies can help you to not fall victim to margin calls from “emotional trading”. You really have to be a master of discipline to be a successful trader. To be a master of discipline you need to have confidence in your trading plan.

Too many traders rush in and blow up a 10,000$ account within 6 months. Anyone can open up a demo account and play with practice money until they are confident in their strategy. You wouldn’t throw your money out the window so why hand it to your broker?

Even when you find a trading strategy with a high probability it may not work well every day or some months. Taking your time and practicing until you have full confidence can save you a lot of money and stress when you learn day trading.

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