One of the biggest misconceptions of day trading is that you are in constant action, in and out of trades.
Sometimes the market simply won’t have anything to offer you.
Professional day traders aren’t only good at knowing when to get in and out of a trade and managing risk, it’s also knowing when NOT TO GET INTO A TRADE.
This is what happens to a novice trader when the market isn’t giving you anything:
Emotions stir, restlessness takes over, you think you need to be in one so you start to look for any trade, because than you’re not day trading, right?
Sure, you can get in a trade. If it’s not ideal, and doesn’t have all your green lights on, you have a very high probability of it losing.
So instead of not doing anything for the day, you will come out with a loss. And the loss won’t only be the money, it will result in getting angry at yourself for taking a trade that wasn’t in your plan.
And in trading, emotional currency spent is the hardest to deal with.
We all lost money before, it sucks, but when you know you did all the right moves, you get over it because it just happens sometimes. However, when you know you’re not in full alignment and do it anyway, that’s when it truly affects you.
So let’s switch this misconception right away: YOU WILL HAVE DAYS WHEN THERE ARE NO TRADES – and it’s OK. Because the next day you will have great ones and this day will be looked upon as a learning experience.
REMEMBER THIS – spending time in front of the charts and watching what the market is doing is ALWAYS a good thing – it’s like practicing your scales on the piano even if you’ve played in the best music halls around the world – you will always learn something new!
Marina 'The Trader Chick' Villatoro