“Have you ever heard the phrase “nobody’s perfect”? Well it has never been more true than in the day trading arena. You will rarely, if ever, pick the tops and the bottoms, and as such you need to make the moves that you do catch work well. It is for this reason that you also need plan your trades well. So many times when I was teaching a trading seminar I would hear would-be traders discussing how they love a particular stock at a certain price and would love it even more if it came in to an even lower price. I would almost always catch them looking like a deer in the headlights when I asked them where they wanted to get out of a position. So many people had entry points but few could tell me their exit strategies. Traders could be so much more profitable if they would only properly plan their actions. As a young trader I used to sit alongside Marc Friedfertig, at that time the owner of Broadway trading, a well-known day trading firm. He drilled into my head to know how each sector moved in relation to others. In other words know where to look for each market scenario.
He explained to me that I should be looking to make quality trades, not necessarily a high quantity of trades. I always wondered why so many propriety traders were kept on even though they were barely breakeven traders, although they rarely made profits for themselves, they generated substantial revenue for their firms. You have at your disposal all the tools needed to be successful, you need only know how to use them, and when. There are thousands of day traders competing for pieces of the same pie, and those who have a plan and show discipline, are the ones who will be successful.