Daytrading - Lesson

I learned a hard lesson today. As I've switched over to daytrading, this has faired much better typically than swing trading in the volatile markets we've experienced. But, there will be times I hold positions overnight. It's a combination of what I'm seeing in the charts, market, and my gut instinct. Most of the time I am right and that's okay.

That's not the lesson learned here. As a daytrader and a chartist, my charts are very important and no one else can read my charts and trade just like the way I like to trade. It's an art. The past few trades I've had my broker execute for me just have been very costly or left me in a position that is horrible. Being this is an art, that cannot be conveyed and he wants a hard number.

Legally I can see why he wants a hard number. The lesson learned here is to just close out my trades or to electronically put in my own stops myself so I can take the emotions of using my broker. Sometimes it's just best to take the profits off the table just like that and if there is more, oh well. Profits are profits. Costs are costs. No matter how good or poor a trade is, how profitable or how costing, there is something to be learned from EVERY trade.

I really like being around other good traders who are profitable, yet are very humble. Periodically I come around profitable and very cocky type individuals. It's fine for them, but there is something about the smugness attitude that sets me off, and hurts my trading.

Lesson 1: When daytrading, do not entrust to others to execute your trades period.

Lesson 2: Trade what you see on the charts regardless of what is happening. They do not lie. Yes, news and earnings are great, but what's happening on the charts? Keep your opinion out of the trades.

Lesson 3: Do not HOPE. Hope rhymes with Dope!

Lesson 4: Stay away from smug traders who think they are all that.

Lesson 5: Stop thinking I can make a quick buck in short period of time. Patiently and calmly trading gets better results.

Lesson 6: FOCUS! If you have a lot of distractions, eliminate them or do not trade.

These are my lessons for today. I hope they serve you well.
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