Successful Intra-Day Traders

Successful intra - day traders remain neutral

Staying neutral is to be as emotionally cut off from your intra-day trading decisions.

Being neutral to the profit and loss
You probably know people for whom the world merknet when they take a loss of $ 100, but if they earn $ 1000, you are at the top of the world. Definitely they are not neutral. If this applies to you, your intra-day trade, almost certainly, is controlled by fear and greed: reduced by $ 100, you probably do not want to take a loss just because you know that will suffer emotionally. Rising to $ 1000, you would like more, even if you must, just, take profits. Or you can take profits too early, because they fear that the position could turn against you. All this is not a good intra-day trade.

Professional intra-day traders do not permit daily fluctuations in their bills, disturb them. The results of one week is not important, do not even have the monthly results. This is only a small episode in their trading career. Daily variations actually have little meaning.

Emotional ups and downs is quite normal for beginners intra-day traders. If these emotions affect your shopping decisions too much, it is advisable to go back to trade on paper, in order to acquire confidence. You should not allow these fluctuations to overly influence you.

Being neutral to the price movements
You probably familiar with the situation when the trade goes against you and you start looking for reasons why it is still a good position and you should retain it. This is very dangerous for the intra-day traders, because it leads to their feet and big losses.

strategies in the trading process - the worst thing you can do. You can always find justification for their position to go up or down, but you do not see an objective price movement. You have moved from response to the anticipation! Within-day trader must not, under any circumstances, try to predict future price movements.

As the intra-day trader you must play on the actual price movement rather than on the motion, which must be! Please leave predictions to investors, you will sell during the day.
Most intra-day traders are included in the position, based on fundamental data. They mixed intra-day trade with the investment. It is also very dangerous. At the time, as may be reason to enter the position for the short-term trading, they regarded it as an investment, even if it goes against them.

Consider the famous example of
Think of "Enron".
Yes, were moments during the sale of "Enron", when the purchase was justified. Some bought Enron during the short recovery of $ 8.5 to $ 10. The problem is that if you base their entry on the confidence that the company is cheap and it should go up, you will be more and more inclined to hold their position or even add to it when the price becomes lower. The stronger your opinion about the market-based instruments, the harder to make decisions based on actual price movement.

Within-day traders do not have to do this. We strongly advise you to have a separate account to trade on fundamental data. In intra-day trade with the big lever, you could be tempted to take risks that would be too high!

We are not saying that bad to have expectations, trading within the day: everyone should know what the potential outcome of his position. If these expectations, however, is not true, within-day trader must recognize and respond according to what is actually happening.

Jens Clover
based on daytradingcoach.com