Categories
Stocks

The Prudent Day Trading Strategy

The essence of business in general is to make profits on initial investment with minimum cost on its day to day running. This motive is applicable to both online and offline business since both of them are viable business avenue, and the difference here is just that online business can be easily managed and monitored with minimum cost as obtainable plus the fact that you also make money while you are asleep in your house, or away to the serene beaches on vacation. In stock business, this motive still remains unchanged because an investor actually wants his investment to grow if possible in leaps and bounds to profits within the shortest possible time. This is the more reason he opts for day trading strategy that can help fast pace the achievement of this goal.

Despite that much has been said about having a personal day trading strategy in my previous articles, the list has since refused exhaustion and hence the necessity to write more on the topic. If as a day trader you still find it difficult to make decisions regarding your investment, then you are plausibly deficient in a very vital aspect of day trading strategy. One of the yardsticks that is used in measuring your competence as a day trader is your ability to make your emotions back off from all crucial market decisions to enable your brain moderate the trading. You see, the battle for supremacy between the brain and the emotion as applicable to any business had existed long ago and I want to say that it will continue to exist. It is the duty of whatever scheme you employ to develop thick skin against any of the two factors above that shows greater vulnerability to failure.

The prudent day trading strategy will ensure that the bulk of your investment is not exposed to significant risk since it will ensure that you are protected from painful losses even when it seems inevitable. It also ensures that you are always in safe hands peradventure the market goes unprecedented in both directions. If you think you are a strategist, then you must know the best time that suits your trading adventures; you do not have to trade because a friend is doing so, you must not follow the multitude; remain in solitude in most conditions in order to learn from attitudes of others. Your day trading strategy should not tend your bank status towards red, if perhaps you smell rat in this direction, then consider a swift change of tactics.