Day Trading Advice: Feeling Lucky
Check out this video from Lightspeed Trading's Trader Talk Series. A trader breaks down the reality of the stock market and how much luck plays into trading. Visit http://www.lightspeedtrading.com/tradertalk.aspx for more unfair advantages!
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Step 1:
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Leave Your Ego Behind
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One of the things that you have to realize about trading is that you really have to try to leave your ego outside. If you try it from home, take it outside in the morning and leave it outside on the front step; if you're trading from an office I really recommend you leave it in your car; if you're taking the subway in Manhattan, that's a great place to leave it, believe me.
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Step 2:
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Stock Fluctuation
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The stock market's a very humbling financial arena and one of the things that you have to realize is: if you buy a stock and it goes up congratulations you are very, very lucky to join them, and when you buy a stock and it immediately goes down you're wrong. You can't beat them, whoever the infamous they are; the market has no sympathy, the market has no mercy, the market doesn't know who you are.
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Step 3:
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Market Conditions
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When you're lucky enough to just be there on the right side, don't think that you're smart, you're not, you're lucky, and being lucky, and joining them can be a very, very rewarding career. When you just admit the fact that you were lucky enough to join them on the ups, lucky enough to join them on the downs and when you're short and the market's going up or you're long and the market's going down, you're wrong, it happens, you're a human being, accept it, move on, and tomorrow's another day.