Home > Lessons from the trading floor > day trading and profit potential

day trading and profit potential

How can I make more on my winning trades? Is a question we hear quite often from new traders. Let me ask you a question. I would like to drive really fast ALL the time. Can you show me how to do that? Sounds funny even saying it.

 

The truth of the matter is that the stock market just does not trend from low to high or high to low often enough to think you will be able to hold on to winners all day long. If I had to put a percentage on it I would say it happens around 30-40% of the time.

 

Of course these are the charts that they show in books and seminars. The one you would have made a killing on. Real world trading is booking profits and moving on to the next trade. Leverage is abundant (probably too much so) and commissions are so cheap that there is no reason to sit back and wait for nothing but one of these trend type days.

 

I am not saying that you should not want one of them to unfold; I am saying that if you plan on earning most of your trading revenue for your business on those days you had better have the patience of a Buddhist monk.

 

Earn while you learn. Book profits and you will be in the business long enough to take advantage of those bigger days. Learn how to drive the car first before you want to drive fast.

 

http://keystonetradinggroup.com/

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: