How did I start day trading? Just like you.
Demo period and all!
I talked last week about demo period but when I was brand new, I didn’t have a clue what it was.
I thought I wasn't smart enough for it.
Then I figured it was some silly multi-level marketing thing, and yep - I was very wrong.
So, drop all your ideas, worries, and perceptions for how you think this could go, and be present.
I won't let you fall. And soon you could be the one looking back on when you started day trading and sharing with someone that they can trade just like you.
It took me four trades to know that Prime Day Trading was for me.
Did I have more to learn?
And here are a few of the things I learned while in my own demo period. In my own words…
What is a stop loss?
Think of stop loss like you going on a cruise and having no railing on the sides of the ship.
Sure, it may feel like it's a better view, but you will most certainly fall to your death.
Now that might be a bit dramatic – more on the emotion in trading in a bit - but it gets the point across.
Don't think of a stop loss like you're limiting yourself.
Rather, think of it as a sort of insurance should something goes amiss.
It’s a safety net.
The emotion of trading
What drives any market that involves money?
Fear and greed – even if the greed is simply the desire to do well.
But markets are unpredictable and just like you, I learned about losses.
But I will teach you how to handle losses - as they will come - just like life.
And as in life, it’s more about how you choose to handle the losses, than the loss itself.
So, about that emotion
How to you know when to cut your losses?
Or even more difficult, how do you know when to take a profit?
These are two of the most difficult parts of trading.
Why? The emotion.
Fear vs. Greed
Whichever side you’re on, it’s about setting a predetermined target or goal.
If there's not a goal, what are you doing it for?
If there is no target, why be in the market anyway?
Wouldn't it feel great to know what you could make as you set up your target, took out the emotion, and walked away?
In the words of the great Zig Ziglar, 'you can't hit a target you cannot see, and you cannot see a target you do not have.'
If you don't know what you're going for, why are you going at all?