Trading can be simple, but it’s not easy. And trading is definitely more difficult if you complicate it.
Remember the saying: “A Confused Mind Takes No Action.” As a trader, you MUST take action, every single day; therefore, you must avoid confusion.
So keep it simple. Very simple.
Here are the three “Secrets” to Day Trading Success
Secret 1: Trading In the Right Direction
You must buy when the market is going up and sell when the market is going down. That’s how money is made.
Secret 2: Always Know When To Exit A Trade
It is essential that you know when it’s the right time to exit with a profit AND when it’s the right time to exit with a loss.
Secret 3: Trade the Right Market
The right market is a trending market. As you know, money is made in trends – either up or down – so you dramatically increase your chances of making money if you trade a trending market.
Now you know why I put the word “secrets” in quotation marks. These are not “secrets” at all.
Unfortunately, though, most traders don’t realize the importance of these facts and tend to forget them.
Losing traders focus on finding a “magic method” of trading, visiting countless websites and spending hundreds and thousands of dollars on books, courses, and software packages.
Don’t make the same mistake. Keep your trading simple.
Remember, the “secrets” to day trading success are universal. They apply to every market, whether you’re trading stocks, futures, options, or forex. And they apply to every timeframe, which is why they’re so powerful.
Focus on the “secrets:”
1.) Learn how to determine whether the market is going up or going down.
2.) Learn when to exit a trade, when to take a profit, and when to bail if the market is not moving in your favor.
3.) And learn how to find the right market.
Don’t make your trading overly complicated. Stick to the basics. As you already know, if you can’t drive a Ford, you won’t be able to drive a Ferrari. And if you can’t drive a car at 10mph, you shouldn’t try to drive it at 80mph.
Remember Power Principle #1: Use Few Rules – Make It Easy to Understand . That’s how your trading plan should be.
Take a look at your trading plan right now and answer the following questions:
o Have you found an easy way to identify the direction of the market?
o What tools or indicators are you using?
o Are you using more than two indicators? Are they complementing each other or contradicting each other?
o Can you describe your entry rules in two lines or less?
o Do you know exactly when to exit a trade?
o Do you know when to exit a trade even before you enter it?
o Are you sure you’re trading the right market? Did you select a market based on your goals or based on a “friend’s” recommendation?
o Did you evaluate other markets to see if there’s an alternative market which may support your goals and your trading strategy BETTER than the one you're trading now?