Emotions have no place in the life of a day trader. Many will remember
Spock from Star Trek, a Vulcan who had no emotions. Spock would have made an excellent day trader. For that truly is the goal of trading stocks, we need to be able to trade without emotion. Yet it is truly emotion that drives the market so often. Fear and Greed are constantly at war with each other, and each can fuel either a huge rally or a huge sell off. A good day trader must be able to set aside their emotions, look at the facts and trade logically and consistently.
How do you know if you are trading emotionally? How do you pick your entry and exit prices? Are you entering because you are excited? Are you entering because you just have a feeling about this trade? When you exit is it because the pain of the loss is simply too great? Do you sell because you are happy, sad or angry? If emotions are effecting or driving your entry or exit prices, you will never be a successful day trader. Because emotions are fickle, and most often will get you into a trade at the worst possible price, and exit the trade at the worst possible price. If you find yourself being an emotional trader, it is time to take immediate action to change your style.
This is where a service like ours can help. We provide you with a consistent logical and trustworthy approach to the market every day. Our target prices are not based on emotion, and can be used reliably to forecast market direction. We’ve averaged over 55% a day by trading consistently and unemotionally. By using our service, a trader obtains an objective outlook on the market that can be used to help identify when to enter and exit, not based on emotion.
It is vital for each trader to develop an approach that eliminates emotions. This means developing some rules and acting accordingly. Know before you trade, when you will enter the trade, and what you will be looking for when you exit the trade. It is easy to be ready to win, but you must also be prepared to lose, realize no approach is perfect. We lose about 3 out of 10 trades, we expect it. We expect to lose at least one trade a week. Such a loss doesn’t upset us or cause us grief, we simply recognize it as part of the trading process and return the next day to do it again. We know the winners will be there as well, and so we stay consistent and trade based on our approach not based on how we feel. This is the way to trade like a Vulcan, to trade without emotion and truly be successful.
We had another great week day trading SPX weekly options. We were up 187% Day Trading SPX Weekly options this past week. That puts us up 937% for December and an astounding 9,265% for the year. We wish you and your family a very Merry Christmas! We’ll look forward to another great week day trading SPX and SPY weekly options next week.