Secret #4 – What You Do When the Market is Closed Matters Most
Sure, it’s great to be able to interpret data at lightning speeds, spot valid trades within seconds, and execute them flawlessly, but without proper preparation, you will never find those opportunities. Proper preparation includes spending up to an hour before the market opens sifting through market scanners, reading news feeds, and watching pre-market trading. It also includes some time after the market closes evaluating your trading for the day and keeping an eye on the after-market action. Without this you will fail.
Secret #3 – Less is More
You’re not going to believe me on this one until you try it all for yourself, but the less help you use, the more money you will make. I’m talking about the monitors, and the indicators, and the distractions like chat rooms where you think you’re getting some super trading tips. You will eventually find that you can trade using just one monitor, maybe even a laptop… from the patio. You will eventually realize that all indicators are just interpreting the same basic information and you’ll find the ones that work best for your trading style. And you will eventually realize that your trading style is unlike anyone else’s and trying to follow chat room traders is a futile effort.
Secret #2 – The Tape is Your Best Friend
Some people are good enough that they can trade using the tape (or time/sales) window alone. I am not that good, however, it is my go-to source of information about a stock. It gives you every trade in real time, and every indicator is merely a step or two away from this direct line of information. Even my trusty charts aren’t so clear as the picture painted by the tape. I’m not great at reading the tape, but give me a stock chart and its time/sales and I am a happy trader.
And now for the…
#1 Day Trading Secret – There are no Day Trading Secrets
It’s not like day traders sit around and come up with the secrets of day trading that will make them millions of dollars. All the information to become a successful day trader is readily available. The problem is that most people simply want some easy system to make a lot of money, so I guess the big secret of day trading online is that this actually takes a lot of work. That is why more people fail; because most people are lazy. The only people who try to persuade you that day trading online is easy are marketers trying to sell you some new propriatary trading system, indicator, trading robot, or $197 eBook full of drivel. These are also the same people who want you to believe that they can sell you the biggest secret of day trading. They are preying on the typical lazy humans who simply want to make a quick buck. The ironic thing, though, is that the only people making a buck are the people selling day trading secrets while those who are searching for them are simply wasting money.