In order to succeed as a day trader, people need to choose a good trading strategy, but this isn’t always enough to make things run smoothly. Trading can be difficult for people because they allow their emotions to keep them from pulling the trigger on a trade. This may be the reason that you are finding it hard to be the lucky day trader that you wish to be.
One emotion that can keep you from being a successful day trader is fear. If you can complete your trades with good judgment, there is a chance that you will do very well. In order to help you overcome your fears, we need to know what makes it hard for you to pull the trigger. After you learn what your weaknesses are, you will be able to find the talent within you that can turn you into a great day trader.
Do you pause when it is time to pull the trigger?
Before you make a trade, you do a lot of research. You know what your entry positions are and what your stop levels will be. Even so, you can only look at your screen when it’s time to act. This is a problem because some day trading strategies do not allow you to pause. Those who do can lose their money, but those who don’t hesitate have the potential to profit.
You can fight this type of fear by executing the trade when your entry point hits. If you don’t believe that you can do this, you can place a limit order and then move away from your computer.
Are you afraid that you are making the wrong decision?
The fear of making the wrong decision can keep you from making your trades because you are constantly thinking about winning and losing. Trading requires that you accept the idea that you are participating in an odds game where you need to have the upper hand. If you are overly concerned about making the wrong decision, you may decide not to trade.
Is an unsuccessful trade from the past holding you back?
Negative trades from the past can create a fear of trading because if you lost money, you will always remember it. These losses can cause you to be afraid to trade days, months and even years into the future.
You can fight negative emotions that are due to bad trades by accepting your losses. Then, you can accept responsibility for these failures. You will understand that each trade is different from the others and that you will never have two trades that will offer you the same experiences.
You aren’t going to be able to change in one day. As you concentrate on one trade at a time, the trade that didn’t go well will become less important. You will understand that trading is an odds game and that it doesn’t matter if you lost once in the past. This reality will not prevent you from earning profits in the future.
Do you worry about what is going on in the broader market?
You are keeping your eye on a particular stock. This lets you know that the stock is a great setup. When it comes time to pull the trigger, you decide not to because you are worried that there will be a correction in the broader market.
In this situation, realize that the broader market can experience a correction and move in the opposite direction. Although it’s a possibility that the markets will correct, you cannot let this stop you from trading. You have to accept the fact that there is a risk to day trading and do it anyway.
Do you think that you can’t do it?
It can be hard to admit, but sometimes, you don’t think that you can trade. Maybe you have lost confidence in your trading strategy. You might have started to believe that you can’t do anything. If you think this way while you are trading, you will fail.
The most important thing you have to learn from this article is that you need to think positively if you wish to be a successful trader. If you don’t believe that you can win at day trading, a reason that you shouldn’t try will always come to mind.
Is it a good idea to accept every trade?
It depends on how much experience you have, but it’s possible to be in any one of the above-described situations. The remedy for each one of these circumstances is one thing. You have to become used to the idea that you are a day trader. You must know that when you are trading, you are dealing with odds, and you need to have something that will tip the odds in your favor. After you believe that the odds are with you, you will be able to place trades without worrying about whether they will be winners or losers. In the long run, you will have won more than you have lost, and this will make you a winner.
After you have begun to see the markets as an odds game, the worries that were described above will be distant memories. That’s because you will have learned that the variables are always changing. You cannot possibly know how each one will influence your trades. This means that worrying and trying to predict the markets’ every move is a waste of your time.
Don’t worry. Trading was meant to be challenging, but it was also meant to be fun. It’s a time when you get to know important things about yourself. If you can’t carry out your day trading strategies because you have any of the concerns listed here, feel free to take a break. In the meantime, try our trading simulator so that you are not risking your money while you are learning what makes it difficult for you to make your trades.