“Know that one thing by knowing which everything else become known ”
…This is secret to become CONSISTENTLY successful intra Day Trader…
Most of struggling traders contacting to me , and complaining about same things : That they had learned so many trading strategies , some of them are profitable also , But they are not able to stick to that day trading strategy….
After learning day trading strategy , in back testing everything works fine….but when they start live trading on real money they are not able to follow that strategy…
What is root cause of this problem ?
What is solution to this problem ?
Lets understand it in step by step manner :
Step I : You learn day trading strategies either from internet or by attaining any free or paid seminars or from your friend.
Step II : without proper back testing and forward testing you start to utilize that day trading strategies.
Step III : First few trades goes in profit….You becomes happy (Euphoric state of mind )…..You think that you had found Holy Grail trading system….and you are going to make lot of money from it….All your dream is going to come true because of this strategy.
Step IV : Being natural part of any kind of day trading strategy , you start to experience few loss trades …..After that your confidence on that trading strategy start to decrease…..
Step V : You starts self analysis , particularly about loss trades …..do research on internet ….try to tweak variables of your trading strategy….to avoid that particular loss trades…..
This step V is pin point of your habit of changing so many day trading strategies….Not able to remain stick to one profitable day trading strategy.
You think that with the help of some indicators , price patterns , you will be able to avoid few loss trades….This is biggest misconception of your perception….
You are not understanding basic and most fundamental nature of trading business.
Trading is not game of perfection , It is game of probability.
Technical analysis is not rocket science ….it also not art….It is combination of science and art.
With the help of technical analysis you are trying to predict price movement. Where price will go in future ?
Price movement is basically depend upon two major human emotions : FEAR and GREED.
These emotions are itself dynamic in nature….You can’t calibrate it in static criteria.
Technical analysis has certain limitations…In any technical day trading strategy – You are going to experience random distribution between profit and loss trades…..
Once you understand mechanism of price movement and limitation of technical analysis in details (Along with solution to avoid limitation of technical analysis), then only you will able to CHANGE the habit of CHANGING so many day trading strategies….Then only you will able to remain stick to one day trading strategy…..Then only you will able to FOLLOW one strategy….
Plz remember :
“ If you FOLLOW your trading rules ….then only money will FOLLOW you….”