Article provided by: 30minutestocktrading.com
Making a lot of money day trading stocks is possible; however, a few key principles have to be adhered to in order to become successful. The first principle to becoming a successful day trader is having a real working system or strategy in the first place. If your system has not been tested in the real world under real time trading conditions, then it may not be wise to follow that system in the first place. The system that is being sold on this website has been fully tested with real trading and real money. In addition to that, serious backtesting has been done to make sure this system will make you money if all the rules have been followed and that the trader trades every morning the market is opened. j
The second principle of day trading is adhering to a good risk management system while trading your strategy. There is an old rule in day trading called the 90-90-90 rule. Simply put, it means that, in general, 90% of traders lose 90% of their money within the first 90 days of trading. Many brokerage firms confirmed this statistic using their own clients' database. What does this mean to the new trader out there? It means if you dont' know how to trade a good system while using a good risk management policy, then the chances of blowing out your account are very high. Let me ask you, if there was a 90% change of getting into a car accident every time you drove, would you still drive your car ? I think not! (The real statistic is below .01%.) Then why risk your hard earned (and saved) capital just winging it? A sound risk management policy will give you the ability to keep on trading even if you have multiple losing days or even weeks! Just because you are in a bad streak, doesn't mean your account balance needs to suffer too much. Every day trader has bad days and even bad weeks. Don't let it bother you. Eventually, most traders go through a seemingly endless losing streak.
The third principle to being a successful day trader is having a good mentor you can have access to when you run into trouble. There is nothing wrong with reading online courses, reading physical how to books, and watching trading training videos to learn this skill. However, there usually comes a point in any trading course, whether it's stocks, futures, commodities or forex, when a student needs to talk to an actual person. A good mentor is patient and needs to understand that people learn at different speeds. A good thing to remember as a student is that just because someone is a quick learner, does not mean he/she will end up a good, long term trader (look what happended to Annakin Skywalker, haha). Whether you are a slow learner or quick one has nothing to do whether or not you will be a great long term trader in the future. Sometimes, fast learners get to cocky, succeed too quickly, and then fall apart to pieces when they hit a losing trade, or losing day. Their ego takes a big hit and sometimes never recovers and they quit. Slow and steady wins the race. Day trading is a marathon, not a sprint. These cliches might sound corny, nevertheless, they are all too true .