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day trading lessons

I see it happen over and over again. New traders sit down at their screen with a list of 75 stocks they can’t wait to get involved with. They have every indicator on their screen that money can buy. These are the traders who ultimately never make money. They think they need to know the most and they think they need to watch everything to make steady money (thinking if they are not watching as many stocks as possible they will leave too much money on the table).

Your job as a short term stock trader is to find those pockets of opportunity during the day where you can make your living. Ultimately those pockets are opportunities are where you can use more leverage because the trade”lines up” well. It is very hard to get the gut feeling it takes to use additional leverage if you do not know how the stock trades.

The only way to learn this is to watch fewer stocks that are liquid enough to manage your risk but have enough intra day movement to earn a living. It can be a basket of unrelated stocks you trade every day (how I trade) or it can be the large cap stocks from a specific sector. This method of stock selection has proven itself over time.

Learn the stock, increase leverage, then add another stock and repeat.

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