Intraday Trading Strategies – What’s A Losing Day Look Like?

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Intraday Trading Strategies – What’s A Losing Day Look Like?
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What exactly does it mean to participate in intraday trading? This is no different than day trading. It simply means participating in the market only during the day time hours. In fact in most cases it means holding for no longer than minutes and hours at the most.
Most day traders do not hold trades overnight. Everything is intraday trading. If you are holding positions overnight then you are more like a swing trader.

The most important thing to understand about intraday trading is the fact that it isn’t for everyone. You have to know your comfort level before you become a day trader. Some important factors that will help you make the adjustment from typical investor to day trader include:

1. The size of your roll

2. Building a strong mental foundation

3. Having a solid system with proper stop management and risk reward set in place

Most people have an incredibly difficult time getting used to the fact that losing is inevitable. In fact that’s the single largest reason to blame for the fact that there are very few profitable traders.

In order to achieve profitability one of the most important things a trader must pay attention to is the market environment. Take today for instance. Today was obviously a very choppy day which was very slowly moving sideways. If you are to be a huge winner you have to learn when it might be best just to sit on the sidelines and watch the action. Today was exactly one of those days.

My number one goal in a market like today’s is to lose as little as possible. Anyone can win in a trending market. What separates the huge winners from the huge losers is the ability to control your emotions on those not so great looking days.

What you’ll notice in today’s recap is that I was able to minimize my losses to -1.75 points on five contracts. This is equivalent to -$87.50 at the lowest levels of trading. It’s -$437.50 at five contracts. I can tell you that I was actually quite excited that I lose only this much today. I had two fantastic days which still put me up over ten points on the week.

So, remember the most important thing to learn about intraday trading is to limit your losses on those really horrible days. If you can do that then you are well on your way to becoming a profitable trader.