Day Trading is like Monopoly

biyasc · #1 19th March 2008, 11:59 AM

Day Trading is like Monopoly

I know a lot of traders who are just seeking by or breaking even at the end of the month. Many of these traders ask what they could be doing better or what my "secret" is.

So what's the secret? It's painfully simple - Day Trading (or any type of trading) is like Monopoly. You buy 4 houses and sell them to buy a hotel. In other words, you find a simple, routine, monotonous way of trading and you just do it over and over. Most of the guys I talk to have a trading strategy, most of them have tested it. What they don't have is the confidence to just stick with it. Trading shouldn't be a roller coaster, but rather it should be routine like filling out TPS reports.

I think the main reason that most traders can't stick with it is that they haven't got enough mental focus. They get tired and sleep in past market open, or they become unsure of themselves so they fail to initalize the first trade of the day when the setup is right in front of them, or they rationalize that some piece of news or the other will do such and such to the market. All of these rationalizations are subconscious disruptions coming to the surface.

If you've ever failed to stick with your trading plan and end up taking the one losing trade of the day, I strongly recommend you check out Mental Toughness by Daniel Teitelbaum. In his book he states that you need to break down the walls that are stopping you from reaching success. He has you work on several mental exercises to help you focus on what you need to do. After all, if you knew that you had to take that GOOG trade this morning or your family would die you'd be plenty motivated to take the trade and to do it right.

Make a committment to yourself, to your family and to your trading by taking the next 30 signals without deviating from your trading plan and I guarantee that you will learn the secret to your trading success - you.

(got the article from internet.)

mnandini28 · #2 19th March 2008, 01:18 PM

That was good. Thanks

Nandini

trader111 · #3 19th March 2008, 05:48 PM

Quote:

Originally Posted by biyasc

In other words, you find a simple, routine, monotonous way of trading and you just do it over and over.

Day trading need not be monotonous. Indeed it cannot be. Each move in the market is new and interesting, though the pattern which unfolds it might have a repetitive nature in the diffused sense.
On the extreme side, there are day traders who enter a ticker only around news events, like managerial announcements, release of economic nos. etc.

also

Quote:

I think the main reason that most traders can't stick with it is that they haven't got enough mental focus.

why most traders can't stick with their system is because of lack of knowledge and understanding of underlying premise. If the strategy is well known, out-of-sample data (losses) won't let them take emotion driven decisions.

beginner_av · #4 20th March 2008, 12:36 PM

no point in shooting the messenger. but as i guessed, the author admits that he has talked to traders. Has he traded himself?

If you have **** like this

Make a committment to yourself, to your family and to your trading by taking the next 30 signals without deviating from your trading plan and I guarantee that you will learn the secret to your trading success - you.

to even take the next 30 signals, why the hell are you trading? and wow - secret in 30 signals? for me in 8 days at the most in the most sleepy mkts. and u expect me to know the secret?

hitesh05 · #5 22nd April 2008, 08:58 AM

I like this article.

sudoku1 · #6 22nd April 2008, 10:24 AM

in my view.....daytrading is akin 2 taking out money from someone's pocket.........

uasish · #7 22nd April 2008, 12:22 PM

My personal view ;it is just like any other business.

raosrinivas · #8 22nd April 2008, 01:23 PM

My view about day trading, i would love to make money day trading, but i know i do not have the capability and skill to successfully carry it out, so i am sticking to positional trading being an amateur. but i do not want to call grapes sour just because i can't do it and someone is able to do it.

kuriako · #9 22nd April 2008, 08:15 PM

I guess it is :-
Coolest thing to be master