Daytrading tips.....

You are not alone!

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Quote:
Originally Posted by jzettel
Okay, So curious If any of you have some tips to help mentally prepare trading a larger account. On my micro I'm able exercise patience and see most trades to profitability. However, on my Mini I get scared and get out too early both on winners and losers. Any words of wisdom to live by?

Thanks,

Jeff

Hello Jeff. Everyone at one time or another feels the same way. One reason is that there is little emotional attachment to a smaller account. So the pressure is not there in the same way that is for a larger account. A larger account represents hopes, goals, and dreams that become endangered with each pip the market moves against your position. Traders close out profitable trades early for fear of losing a profit. On the other hand, traders hold trades and refuse to take a loss as part of the goal or the dream goes with the loss.

Looking at each trade as one in a series of a thousand trades helps to take the pressure off of one individual trade. Setting stops and limits ahead of time and sticking with them is a good way to place the trade and walk away. Win or lose you know there is another trade out there. Keeping position size small relative to your account size will also enable you to look at each trade objectively as a potter looks at clay. Focusing on making a daily pip goal instead of a dollar figure helps too. The casino's give players chips for money because there is little emotional attachment to a plastic disk. However, there is a lot of attachment to a greenback.

I hope these suggestions help. If I get a lot of losers in a row, I drastically reduce my position size to the smallest unit I can trade. If I still can't get into the rhythm of the market then I go back to demo until I can get in synch with the market.
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