20 Dos: of Successful Day Traders
DOS:
1) Be patient–don’t just dive into a trade
2) Develop a proven strategy–don’t just trade blindly
3) Trade what you know and understand–if you cannot explain it, why trade it?
4) Check the daily news on your stock before you trade–stay informed on upgrades/downgrades/earnings etc…
5) Do a quick risk/reward analysis before you place the trade–put yourself in a good position to make money
6) Watch a stock’s trading behavior for a while–learn its “personality”
7) Cut your losses short and let your winners run–basic, but effective
Get into a pairs trade if your initial trade is not working–reduce your risk
9) Trade with the markets that day–shift your deltas according to market conditions
10) Anticipatre the unanticipated–always have some offsetting position just in case events reverse
11) Live to fight another day–no cash means no trading
12) If you have a hot hand then work it, if you don’t then consider folding–recognize your rhythm
13) Know yourself–trade within your comfort zone
14) Stay focused–rid yourself of distractions
15) Trade with simplicity–don’t overthink things
16) Stay positive–negative energy can impact your trading behavior and results
17) Learn from your mistakes–mistakes are inevitable so use them to your advantage
18) Drop your ego at the door–it’s ok to take a loss, it’s part of the game
19) Take a deep breath–it’s going to be ok
20) Read as much material as you can on day-trading strategies–knowledge is power
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