If you have been following our previous thesis intensely, you would have observed by now, that we have treated issues on “Day Trading”, where we discussed “WHAT YOU NEED TO DO TO START DAY TRADING”. Now we shall further pierce into the intricacies involved with “Day trading” that you may not be ware of already.
“Day Trading”, as exciting as it may seem, is not as easy as it is made out to be. It involves making complex decisions from time to time, all in a bid to ensure that everything you do should result in a profit, consequently, minimal losses on the whole. Now that is where the work lies. Unlike long term trading which requires, you to set up your position/positions with the appropriate take profit and stop loss, for a week, running into a month/months; the day trader does not have that luxury and this could be due to many antecedents. One of which could be lack of adequate capital, to hold positions for long periods. It could be as a result of fear and or greed,-In other words not enough patience to wait for the market to give results-. Then again, it may stem from the fact that, there is enough time on my hands, so I can afford to trade daily, etc.
Whatever our reasons or excuses may be for preferring day trading, it is entirely up us and usually our own prerogative. It will not change the toll it takes on our mind when we over trade during the space of one day. That is not to say, day trading is not recommended, but rather there should be a discipline to it.
Those with large capital base, can afford to leave trades for longer periods, but since we are on the side of the small guys like us, then we simply need to find a way out. Brokers, especially “market makers” capitalise on this weakness. They are aware of the fact that, they can easily ware out the smaller guys, since they do not have enough capital to stay in a trade for long periods. To get through this, a trader must be disciplined. You must trade during the morning hours from 6am to 10:30am/11am (GMT). During this period, there is adequate liquidity in the market and manipulations are rare, since brokers themselves may not be able to withstand the volume. Maintaining such discipline, would also help you save some strength for the next day. You will not get warned out mentally.
Ephraim Archibong is a trader of over four years and counting and is willing to share his knowledge and experience with anyone who is willing to learn.
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