TSFT Review: A Word About Day Trading

Hello Traders,

As I mentioned in my last post, some of you wanted a day trading technique that you can use to make money consistently. The keyword here is consistency.

To gain this consistency, you have to dis-abuse yourself of commonly held notions about day trading- at least they have not held true in my experience.

My favorite is that day trading has to be fast. Get in , get out in 10 minutes flat.
Nothing can be far from the truth.

This kind of thinking eventually leads to a blown out account due to too many stop loss hits.

I am going to make my first confession here, I do not use stop losses. They are a waste and they will erode your account surely and fast.

I trade another way and i will share that with you in due time during this review.

A day trade in my opinion should take as long as you win the trade for how many pips that you are comfortable with and is realistic.

This may take between 30 minutes to 20 hrs. Are you surprised? Just because you are making a day trade does not mean that the market knows that you are day trading.

So you have to be patient. The keyword here is patience- the ability to wait unperturbed for a desired outcome. You need to exercise patience for entries, pip gain and pip harvesting. In other words, before, during and at the close of the trade.

Many of us, including me, got into trading because we want to make a lot of money, in a seemingly painless way. This might be true, but we are immediately faced with the twin emotions of fear and greed, once we start to trade.

Greed, in the sense that we translate the American fast food culture to trading. Big money fast. I say, big money steadily.

Using stop losses, especially unrealistic ones, is a manifestation of fear. Otherwise why would you set a 30-pip stop loss for an instrument that has a daily trading range of 126? You know, we have met the enemy and they are us!

Doesn't make sense. Does it?

You are surely going to lose the trade because you have boxed yourself in. Never do this unless you want to keep making your brokers richer and yourself poorer.

We will learn another way.

When i was a youth, I use to trap rodents. They are as smart as a whip when it comes to evading capture. I learned something from them. And this is it.

A rodent never resides in a hole with only one entrance or exit. They construct multiple outlets, sometimes 5 or 6. If you came to the front door, they would escape through the side, back or the roof door.

So to trap them, you have to discover all these doors before you make your move.

As a day trader, never box yourself in with a stop loss because that is a hole with only one exit.

Be the rodent and develop several exits. Before you enter the trade, visualise how the trade might play out so that when they do, you are not surprised and make a panic exit.

My next post will be how to use the genius of Archimedes to win in day trading. Before my next post, please read up on Archimedes. You can just Google him.

best-
Olumuyiwa