Day Trading Psychology: 3 Tips For Resolving Day Trading Stress

Has this day trading problem happened to you?

Your brand-new day trading system works fine in your head and when you don’t have real money on the line. But when you go to actually trade real money, your carefully-organized system gives you nothing but loss after loss.

Is the system bad, or is it you?

Most likely, it’s you. If a formerly profitable day trading system isn’t working in real life you’re no doubt worrying about dollars and losses instead of carefully following your system. While you’re trying to follow your system, you’re not actually doing so.

When that happens, you’re trading blind and the fault is yours not the system’s! This is a sure way for repeated losses as you’re just throwing darts in a dark room.

So here are some key ideas to help you reduce stress, improve your trading psychology and ensure your day trading system works in real life the way it did on paper:

1. Minimize your trading frequency so you’re not constantly making decision after decision – having to make rapid-fire decisions (some of which will always be losers no matter how good your system) wears you down very quickly.

2. Find or create system that produces high-probability signals and which gives you an excellent win:loss ratio in comparatively few trades. Avoid day trading systems that have occasional ‘home run’ wins and lots of little losses in between – you’ll get gray hair and heart attacks while waiting for the next big winner.

3. Take advantage of relatively early moves each trading day so your work gets done more quickly. Finishing early lets you take your day’s profits and do something else with your time (such as play golf or fly your own private airplane… whatever you like to do!) I can’t stress the importance of being able to leave the computer early some days and get some fresh air.

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