Screenshot_8.png

AN INSIGHT
TO DAY TRADING

HOW TO EXECUTE ONE GOOD TRADE AT A TIME


A good trade always follows a pre-defined trading plan and is executed at a relevant level following the individual trading rules in a disciplined way. One good trade at a time is a key element in becoming a consistently profitable trader. It requires a focused mind that remains fully objective and in the present moment at all times.


STAY OBJECTIVELY

In day trading it is important to remain objective at any time. Relying on facts in a neutral and unbiased, unprejudiced way. Without objectivity there is no good trade, it is a key aspect when thinking about a good trade. Often traders search for trades letting them see what they want to see instead of what the charts are telling – an ideal situation will be constructed in the trader’s mind which leads to subjective decision making. A good trade appears without complicated search efforts; it basically says “that’s it” and is based entirely on an objective evaluation.


BE IN THE PRESENT MOMENT

Further, the state of being in the present moment is crucial. Multitasking implements enormous distraction; the mind is constantly switching between different things to think about which makes it impossible to stay in the present moment and focus on one particular task. It requires neglecting what was before or what could be in the future. Worrying about the potential trade result, thoughts about a big winner or big loser in past and general thoughts that are not related to the trade illustrate mental noise. It hinders in executing objectively and reaching peak performance.


RESPECT THE ATTENTION SPAN

Humans only have a limited attention span. In order to executed one good trade at a time that attention is key. Without attention the mind starts wandering losing its focus and the present moment leading to distraction and potentially subjective thinking. In order to maintain the attention at high level, breaks are important giving the mind the chance to relax. It may make sense to set a maximum trading limit which can either defined via trades or time directly. That way it is ensured to remain objective as good as possible remaining the present moment without mental distractions.

CONCLUSION

One good trade at a time is always identified and executed objectively – day trading is pure execution in a neutral way. In order to execute objectively being in the present moment without any distracting thoughts illustrates a key element in becoming a consistently profitable day trader. Common mistakes traders do taking them away from the present moment is focusing on the monetary result of a trade resulting in mental pitfalls. A good trade is a trade that followed all rules, nothing more - it is not always a winning trade. Moreover, humans have a limited attention span which must be respected during the trading sessions. Breaks can help to bring the focus and attention back ensuring to perform on a peak level. The UC Trading order flow trading course provides holistic learning material covering all essential areas of the trading business as well as individual assistance to ensure a best possible learning curve.