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RT's,
It is difficult to teach traders how to trade no matter how much success
the teacher has. One of the questions I always get, why do I charge so much?
Why do you teach if you are trading well? I have had two mentors in my years
as a trader, but both would not take any calls during the market hours, always
after the market closes, you should have done this, you should have done that,
always after the fact.
When I needed the help was during the market hours in the middle of a trade.
My mentors were not expensive as in paying them by the month, but were
expensive because of my losing trades. Who's fault was it, mine of course, I
should have found someone who I could call during the trading hours.
Day trading by itself is incredibly difficult, one must stay focused and
alert for the duration of the trade, always looking for signs that the trade
is not going to work and get out instead of "letting" the market just stop you
out. So many times I hear "I thought the trade wasn't working but I have my
stop in there," just because you have a stop in there doesn't mean you have to
get out there, saving just one tic in the S&P's per day would buy a very nice
vacation almost anywhere in the world!!! Also, if you want to day trade, use
a simulated broker first, all my students use MY simulated broker before they
can ever go on to real time trading. If they can't make money this way, it
doesn't get better in real time.
I have four phone lines in my office at home, one just to call my broker
and the others for whoever calls me during the market hours. I'm amazed at how
many traders who have only one phone line, if you are talking on the phone
with a friend and you have to get out of a position, it takes extra seconds to
get off the line and call your broker, time is money. Also, I have a speed
dialer on my phone, some phones take longer than others.
Next time you want to take training from someone or a seminar for so much
money, ask them if they are willing to be paid from the profits on a monthly
basis until the fee is paid in full or offer to pay them five times their fee
if they are willing to receive their fee from profits. Most teachers would
take a bigger interest in their students if this was done more often.
As far as secrets to day trading and having higher percentages than most
is in one word called "GREED." Almost all traders that fail try to get too
much in the trade, many shoot for homeruns on many trades and don't take the
constant small but often profits. I have precise entries, know my exits before
I place my entry and know where my first target is as well. If the trade goes
my way and misses my target by so much, automatically call my broker and do a
"cancel and replace" and get out of the trade "at the market" on my first
contract and bring my protective stop to breakeven on the second.
In 14 years, I have come upon two good entries in both long and short
term trading, but the blunt of the research I do now is "What to do once I'm
in a trade." When doing testing, it is not so much as the entry as to the
getting out that is the most important. If you want homeruns, fine, but take
profit on the first contract to pay the rent. Oh, I'm not looking for anymore
students for 1999, have too many now.
Oat
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