Profitable Day Trading
There are four stages of a trader, and based on my experience, every trader goes through these four stages before becoming highly profitable with day trading.
A lot of people start out trading notknowing what they’re doing or how to limit their risk, and without a system.This is how they lose a lot of money.
That is stage number one. And it’s oftencaused by ignorance, because these days it’s so easy to become a trader.
How do you become a trader? You open anaccount and push a few buttons and this is how you buy and sell. This is wheretraders lose a lot of money.
The important thing is, once you realizethat you are making a mistake, you will realize that you need a trading system.
Once you have a trading system youtypically move into stage number two, which is losing a little bit of money.
Let’s talk about a trading system first.
A trading system basically does thefollowing three things.
- It tells you exactly what to trade.
- It tells you when to enter a trade, when to buy or sell if you’rebetting on a falling market.
- It tells you when to exit a trade. There’s two ways to exit, it’seither with a profit, or with a loss.
So it is very important that you have atrading system.
If you need a trading system and you wouldlike to know how I personally trade go to www.mytradingroutine.com. This iswhere I have a quick video for you that shows you my trading system, the onethat I personally use.
So stage number two is losing a little bitof money and this is where most traders are giving up.
Keep this in mind; of course every traderwants to make a lot of money, right? But after losing a lot of money, typicallystage number two is losing a little bit of money.
Trust me, if you lose a little bit its partof your journey as a trader, let me assure this.
I’ve been in this phase for a few months, trustme, you’re doing better than the majority of traders.
At this point when you are losing a littlebit of money, do not give up because now you’re so close to stage number three.And what is stage number three?
In stage number three you are making alittle bit of money.
Now you see, stage 2 and 3 is typicallywhere your account does not move a whole lot. It goes up a little bit, it goesdown a little bit.
But even if it just goes up a little bit, from$10,000 to $10,500, once you’re in stage number three where you make a littlebit of money your main goal is to focus on consistency.
When you can consistently make smallprofits, then you will quickly go into stage four.
Making a lot of money.
Why is that? Because when you areconsistently profitable you can add money management to the mix, which is likeadding fuel to the fire, the turbo boost.
However, it is important that you are instage three, that you are making some money before you add money management.
I’m curious what stage you are in? Trustme, being in stage number two and three can be the most frustrating stage.
But when you are make sure that you aresticking with what you are doing, based on my experience you are so close toprofitable day trading and making a lot of money.
Steps to profitable day trading
Stage number one, losing a lot of money.
Stage number two, losing a little bit ofmoney.
Stage number three, making a little bit ofmoney.
And stage number four, making a lot ofmoney.
Every trader that I know is going throughthese four stages. And the worst thing that you can do is give up when you’re in stage number two or number three because usually it isjust a matter of weeks, you’re so close to being in stage number four.
Was this helpful? If so, please like thisvideo and leave a comment and let me know what stage you are in right now.
Hopefully, we will see in these comments that most traders are in 2 and 3 and I really hope that some of you are already on stage four making a lot of money.
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