Re: Why Most DayTraders Fail
Here's another one on the same topic. I especially liked the 5 suggestions that will make you a better trader [emphasis added]. Some may think the suggestions are a bit nebulous but I think it highlights that there is no one ABC path to formulaic success. And EFTTalk helps each of us to decide what our own method for success is.
Essential Steps to Trading Success
By Ray Barros | April 17, 2009
"I was going to complete my views on a ‘measure of contraction' that I started yesterday. But this issue of Denise Shull's (http://traderpsyches.com/) newsletter was one I wanted to share with you. She gives excellent advice.
Her site for all her letters is: http://community.icontact.com/search...n=all&age=week
A trader can read dozens of books and add scores of indicators to their charts. Some easily spend upwards of $20,000 or more buying indicators or courses yet still they are basically break-even (or worse) at the end of the month.
Why do only 5% of the traders who day-trade end up successful?
Two reasons -
#1) Many just want an indicator that is going to reveal the market to them and it is too competitive for that to work.
#2) The vast majority don't approach the challenge in a way that will work. To a large degree, this isn't the trader's fault because most do what they have been taught by scores of "experts".
Here is what will work. Guaranteed.
1. Never forget that the only thing you want to do is predict that others will buy higher or sell lower in your timeframe.
2. Settle on a strategy (and set of tactics) that suits your personality and thinking patterns.
3. Plan to use your judgment in the midst of making decision and entering trades! You are not a robot and you will never become one. Your brain is going to kick-in with its built-in facility for decision making in uncertain situations. In other words, you won't be able to stop it from making judgments and compelling you to act so... work with it.
4. Learn to optimize that judgment through simplicity, practice, keeping records and knowing your feelings and emotions.
5. Manage your Psychological Capital (Mental Energy) more carefully than you manage your trades.
The money will follow. Your brain will work, your pattern recognition will work and your plan (a realistic one) will indeed be realized."
http://www.greenfaucet.com/blogs-spe...5#article-7319
Lady
If you think education is expensive, try ignorance. - Derek Bok