Day Traders are IDIOTS!
We can’t help it. Our occupation forces us to face our inner stupidity every single day. I can’t think of another career like this. Who else goes to work KNOWING they will make several mistakes that day. After all, I’ve never ended a trading day where I felt I did everything perfect. No trader has.
I do have some advice for new traders who are really struggling though. Pay yourselves by scaling out when a trade is working for you!
Most new traders struggle with selling in parts. I’m gonna keep this short and sweet. The MOST IMPORTANT reason to scale out when a trade is working in your favor has nothing to do with profits and everything to do with psychology.
As a trader, you MUST prove to yourself that YOU are in control of your trading and YOU can take money from the market. I’ve been running GreatStockPix.com since 2004 and I STILL scale out for this reason.
It is simply demoralizing to be green in a trade only to have it turn on you and become a loser. Not only did you turn a winner on paper into a loser in reality, but you’ve put your head in a bad place. Now you’re vulnerable to a plethora of other trader mistakes as you try to redeem yourself for this blunder.
As a trader, mistakes can quickly take hold of your emotions to the point where you can slip into that trading abyss known as the dreaded TRADING DEATH SPIRAL.
We are all human. We are all vulnerable. Recognize this and take preemptive measures against the common pitfalls all of us traders face on a daily basis. Take charge of your trading by paying yourself along the way through scaling out.