But Wait! Gut Feelings Shouldn’t Be A Day Trader’s Strategy!
Today, like many days so far this year, I’ve day traded some really scary situations.
Case in point, I’ve had positions suddenly drop fast into the RED, at one point I was down $1,500 dollars. Yet, I held on and came out in the positive $400 dollars. Yes, not what one would expect from an expert day trader, but think about this for a moment. I made $400 in less than 5 minutes, then I was done for the day.
According to one IT website, the average salary of a Web Developer in Californa is $83,272 annually. That comes out to $346.96 a day if one works an 8 hour shift. I’ll give myself the benefit of the doubt and even though I did the actual trade in 5 minutes real-time work, the homework I did usually averages around 3 hours a day working on the stock market. Anyway, one day trade of $400 beats the average pay of a Web Developer, a career path I once strived to achieve but I was always turned down after every interview. Day Trading, for me, has proved to be a sweet revenge, as I also don’t work a full 8 hours, and I work from home in my pajamas!
Anyway, even whent it comes down to looking at technical charts and indicators to determine entry and exit points… it sometimes comes down to a gut feeling whether to continue holding a stock or not to see it become profitable. My success rate is more than 94%, and I’m always reading that only something like 5% of all day traders are successful at it. And many give it up after losing X amount of dollars and/or their Life Savings.
The Yoga and Meditation Connection?
It’s true that Yoga and Meditation can improve on one’s mental clarity and peace of mind. And with that clarity of mind, I suppose one could have a better chance of trusting one’s instincts, gut feeling, or just sheer dumb luck.
I think it’s because I practice Yoga and Meditation that it helps complement my day trading activities. And the fact that I’m also a Jazz Musician comes into play too, because Jazz is mostly an improvisatory activity performed in real time with othe Jazz Musicians. The quick reactions and split second decisions carries over to day trading, where one also has to make split second decisions. So maybe it’s Music, Yoga and Meditation that help me in a beneficial way, that makes me successful.
Hey Now, Don’t Get Greedy!
The fact that I’ve always remained humble and try to keep this clarity of mind that I never want to get too greedy when it comes to day trading. The buying and selling of stocks in a single day is a discipline that can take a while to master. Patience and fortitude are a must. But, I just try to go for practical profits with the resources I have and the current knowledge and talent that I have, so that my success rate is high. You get too greedy, you tend to lose because you’re trying to go for broke and usually you get broke trying.
The best advice I can give a newbie day trader?
Start slow. Practice with paper trading so you don’t risk your hard-earned dollars while practicing. Set practical goals. Don’t put all your money on the line. Learn all you can about day trading. Knowledge is power.