HOW IT WORKS
HOW THIS WORKS AND WHAT TO EXPECT
Well , if you are reading this, you have an instinct inside you that you too want to day trade for a stable income and have a life style of your choice. You might have lots of questions in your mind to know how it works and what kind of service I am offering to you. Everyone of us has a different personality, different temperament, personal and financial situations and goals in one's life.
Here at www.daytradingforincome.com I am making it very simple and showing you how could I day trade for a living and that I have developed a trading plan according to my personality that works for me. It takes a lot of time to learn practice and master the pitfalls of trading and develop a professional attitude to win this game. I will show you what my trading plan is for the existing market conditions which works for most market situations. I have a dual Trading Strategy. In the first strategy, which is a preset morning strategy, I will post a list of symbols I am potentially going to trade in the morning before opening bell, before 8:30 am EST, few days in a month, describing which way to trade it, what price I want to get in and what are my initial stop losses. I am absolutely not promising unrealistic profits or showing you a magic to win this puzzle. I am also not posting long tutorial videos or conducting webinars to teach you any boring terminology or indicators etc. No trader in this world can have perfect entry and perfect exit. The second strategy I follow is a mid day trading strategy where I play with the gainers and the losers of the day. I have a reasoning to enter a trade. I have a trading plan and I stick with it. After the trading day is over. I document all trades that I posted before opening bell and post a illustrational overview of each trade and show how I move my stop losses as the trade progresses and how each trade behaved according to my Trading Plan. I will show how trading with patience, discipline and without emotions can make me a handsome chunk of income at the end of two weeks or a month,
Don’t expect that all trades will be filled. Don’t expect all trades will be profitable. Don’t expect I will end up the day in profit.
But YES my goal Is to create an income with day trading so I can not afford to lose my capital and I can not afford to have a negative month. Expect that at the end of the week, two weeks and month my account value should be positive. I am not allowing losses to pile up. If I am constantly taking care of my downside, my upside will take care of itself.
I never forget that I am day trading for an income. That’s Why www.daytradingforincome.com is my workplace. This is so fulfilling at the end of the month. but I have to remember to keep focussed on my Goal. Don't let distraction, noise and criticism steal your dreams.
- RULE BASED TRADING:
Though there is no shortcut to success nor there is a straight formula for a successful rule based trading plan that guarantees winning in every trade. but many successful day traders have developed rule based trading plans that make them consistent money, so have I developed a rule based trading plan that works for me. while sticking to rule based trading plan, all I have to do is to execute that plan again and again, keep taking small losses as they come but my winnings, may they be smaller in value but over the period of a week, two weeks or a month, they will be more than those losses. here I have a peace of mind, I am sticking to a plan that works. I take the losses as business expenses but don’t pile them up and that is key to making money. Also a rule based trading plan keeps emotions out. That is what I do. To show how small losses or few negative days don’t impact the overall picture and I end up with a handsome paycheck every two weeks or every month ( that’s how I would be paid if I work somewhere). Remember there are different strategies that we can master by practising. I recommend sticking to one or two strategies and master them than doing too many but not doing them the right way. Always remember to trade after you have successfully overcome your emotions and you are sticking to your trading plan. Never enter a trade wothout a stop loss in place. Make sure you are successful on simulated trading Platform first before putting your real money at risk.
HERE ARE FEW THINGS YOU SHOULD EXPECT FROM MY STYLE OF DAY TRADING AND FEW THINGS THAT YOU SHOULD NOT
WHAT TO EXPECT
- I select 0 to 10 stocks to trade in the Preset Morning Strategy, either on long or on short side, and I post them in the morning before market opens. I have my entry price, written as a parent order along with attached orders of profit and Loss ( refer to my trading plan For exit). all positions may not be filled every day. Typically 2 to 10 trades are filled. but on some day It may be none.
- In the second strategy which I call Mid Day Trading Strategy, I play with the Gainers and Losers of the day after 90 minutes into market on both Long and Short sides. I have a valid reasoning to enter a trade and exit a trade. Everything is planned and I know what I am looking for to enter a trade, which I explain in the Trade Analysis of all trades that I traded today with illustration that is easy to understand.
- I have a rule for everything I do, if that stops me out, it is ok. I look at the overall P/L at the end of two weeks and a month.
- Expect realistic profits. Typically this trading strategy has been designed to give me 7% to 10% return on my capital every month, which is 84% to 120% annualized return on my capital.
- When I get stopped out or exit my position, stock might still keep going in my direction, I never say “Oh..Sh***t” I should have stayed here longer. We have to draw a line somewhere, every time it behaves differently. No day trader in this world can have a perfect entry and perfect exit. No day trader in this world can grab the full price movement of a stock.
- Expect a lousy style of day trading. Everything is planned. I don’t jump around in my chair to chase and try to catch flying things. I keep patience and let the trade come to me rather than chasing it. This is not a super active style, instant decision making or taking a decision on blink of an eye style rather it is a disciplined rule based style trading that needs patience and I am 100% in cash position at the end of my trading day.
- I should expect to lose all my capital IF I DON'T STICK TO MY RULES, IF I AM NOT DISCIPLINED, IF I TRADE WITHOUT A TRADING PLAN, IF I TAKE TOO MUCH RISK, IF I TRADE WITHOUT PUTTING STOP LOSSES AND IF I TRADE WITHOUT UNDERSTANDING WHAT I AM DOING. No one is answerable for my actions at the end of the day except me, myself.
WHAT NOT TO EXPECT
- Don’t expect a profitable day everyday. Don’t expect all orders that are on the trading list for the day will be filled. some or all may not be filled because of reasons beyond my control.
- Don’t expect me to trade beyond the scope of my trading plan even If sometimes trade makes money After I get out. No two trades act the same way two times.
- Don’t expect unrealistic profits. If I have $ 50,000.00 account that Will give me 3 to 4 times margin for day trading account and I am making $ 3500.00 to $ 5000.00 every month I should be satisfied. I am almost doubling my money every year.
- Don’t expect me to pile my losses because of fear and greed, which are the biggest obstacles in successful day trading.
- Don’t expect panic actions and panic results. You can not control what is happening in the market. Don’t expect me to make any Instant decision based on rumours and news or any event that can cause markets to move violently. I have Stop Losses in place they will take care of the downside. One small stupid mistake can screw up all my trading capital in my trading account.
- Don’t expect me to take responsibility of your losses you might occur for reasons beyond my control such as your execution time and time you pull the trigger might be different than mine. I am responsible for my actions at the end of the day not for someone else's. Know the risks before doing this.
Before you jump onto my “Today’s Trades” tab, you should be 100% confident and knowledgeable about how to setup the orders, attach the initial profit taker and stop loss orders to the parent order and how to move your stop loss order once the trade gets filled. You must remember the Trading Plan and more importantly you must be very disciplined to follow the Trading Plan and must have ability to take profits and losses whenever the plan says.