Top 7 Ways To Pull More Money Out Of Your Day Trading
By Dr. Jeffrey Wilde
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Day trading is one of the most fast paced and exciting ways to make big money quickly. However, that is easier said then done.
Whether you day trade stocks, emini futures, commodities or the forex, all the following principles can really help boost your profits.
- Set a profit goal for the day. Decide how much you want to make for the day and once you hit that goal, turn off your PC. I have seen many traders hit their goal only to give it all back because they got greedy.
- Plan ahead of time where the best places to take profits are. For example this could be at a nearby big round number in the market like $25.00. In the forex it could be 1.350 or in the emini S&P it could be 1200.00. Markets are drawn like a magenet to these big numbers and are great places to plan a graceful and profitable exit.
- Get the lowest brokerage commission rates possible as this will keep more money in your pocket and less in your brokers. Trading is a business like any other and you must control your costs.
- Focus, focus and focus! Don't watch the TV or take phone calls or play games on your PC while trading as it will cost you dearly in expensive mistakes and missed opportunities.
- Before you enter any trade make sure you place a physical stop loss to protect you when you are wrong. Never enter without knowing how much you are going to risk ahead of time.
- You must resist the urge to pull out of a trade early. Novice traders are usually so fearful of losing money that they will bail out of a trade the minute they are up a few dollars. The only way to really make it big in this game is to ride your winners as long as you can.
- A great way to maximize your returns is to scale out of a trade. For example, if you bought 300 shares of XYZ company, you could sell 100 shares when it gives you a 10% profit and then exit another 100 shares when you are up 20% and then use a trailing stop order to follow behind the market. The trailing stop will help to catch the occasional "Monster Move". By scaling out of a position you remove the difficult task of trying to pick the ideal place to exit.
Dr. Jeffrey Wilde has been a trader in the stocks, bonds, futures and options markets for over 15 years. He is also a trading coach to over 1500 traders in 43 countries.
He has a unique ability to teach traders of all levels to maximize theirtrading skills and profit potential. To learn more, you can visit him at: http://www.win-at-trading.com
or e-mail at: firstname.lastname@example.org
Article Submitted On: March 08, 2006