The volatility in the markets over the past few months have provided those involved in online trading with some incredible opportunities, however, it has also left those with poor trading habits scratching their heads and headed for the unemployment line. I’d like to take this opportunity to review some good day trading habits that should be reinforced. I see so many inexperienced people sitting on bad positions or a poor mix of stocks. By sitting on these bad trades you are missing out on the possibility of entering good ones. You need to look on both sides of the market and adjust your habits to work within your ability and the current trend of the market.
In this volatile market, those engaged in online trading who are in need of booking some profits may want to consider shortening their holding time to something like 30 minutes to one and half hours, and to try not to constantly trade the incorrect side of the market continuously if not getting the desired results. In day trading today’s market you need to be quick and responsive to take advantage of opportunities as they arise. In fast paced online trading you need to be open to taking short positions as well as long ones and for the love of god don’t become stubborn and hold losing positions! In day trading the opinionated trader is slow and more often than not wrong. For reasons such as these you should consider mostly trading the hot or in-play sectors. If some of these hot industry groups are new to you, you should consider making numerous small trades in the stocks that comprise the new sector, until you are comfortable with those stocks and that industry group.
Lastly, did I mention, “Don’t become stubborn or married to a positions!” Be willing to play both sides of the market and you will not only do better, but gain valuable experience in online trading.