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Mastering Day Trading Is About Mastering Your Emotions
Mastering day trading is not about never taking a loss, but knowing when to take a loss. It’s not about getting rich off of one trade, but making small, consistent profits, along with smaller losses until you’re rich. Mastering day trading is all about mastering your emotions.
You see, your emotions tells you that you have to get rich. Your emotions tell you that you can’t lose a trade and what happens? You end up taking a bigger loss. Your emotions tell that you need a bigger profit, so you stay in a trade too long and then you end up taking a loss. Your emotions tell you to add to a losing trade and your losses end up increasing. When you can stay focused on controlling your emotions, you’ll start to see huge profits in your trades. You’ll be able to tell if a trade will be a good trade or a bad trade.
So how do you master your emotions in a trade? The first step is patience. If you’re not in a trade, you’re not gaining or losing money. The only problem you’ll encounter is boredom or FOMO. You’ll see trades moving at a fast pace and you’ll feel the need to jump in. If you understand that stocks tend to spike and take a huge drop, you’ll wait for the huge drop, buy at the bottom, and ride it all the way to the top when it spikes again. If not, you’ll move onto a better stock.
