Stock Trading Strategy: 3-Book Bundle – Stock Market Investing for Beginners + Day Trading for Beginners + Penny Stocks + bonus content: Trading Psychology of Millionaire Investors pdfdrive com

Chapter 3
The Gold Nuggets
While there is always going to be a little luck associated with day trading, there
is still plenty you can do when it comes to improving your averages and
maximizing your profits in the long term. The following tips and suggestions are
a good place to start when it comes to building a successful day trading career.
Finding the right trades
The first thing you need to remember is that every successful trade is always
going to be based around a measured approach. As such, the first thing you are
going to want to do is make sure you are trading the types of stocks that not only
align with your long-term goals but match up with your temperament as well.
Additionally, you will want to utilize any existing knowledge about relevant
fields that you may have to lean into a specific type of stock. For example, if you
previously worked in manufacturing, then sticking with stocks that are based on
companies who deal heavily in manufacturing can give you an edge as you
innately understand the ins and outs of those companies which can give you a
better idea as to what will cause those stocks to move in unexpected ways.
Regardless of the types of stocks you choose to focus on, there are three key
aspects of every trade you are going to want to keep in mind before you pull the
trigger.
Timeframe: 
The most important thing to keep in mind is that you are always
going to want to trade in a timeframe that matches up with your state of mind.
Trading in a timeframe just because someone else says you should is a great way
to end up either nervous or impatient, neither of which is a mindset that is going
to help you make any money.
If you are just getting started in day trading then the timeframe you are most
likely to be comfortable with is the 5-minute chart. This is a nice middle ground
for day traders as the movements it produces will not be as fast as the 1-minute
chart nor will you have to expose yourself to the added risks of holding a
specific stock overnight. You will also need to experiment with micromanaging

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trades all day versus doing research during the weekend and placing weekly
trades at the start of the trading week. Micromanaging trades tends to lead to
gains in the short-term while weekly trades are more likely to produce results in
the long-term.
Methodology: 
When it comes to working with a methodology that works for
you, it is important to find something that plays to your own specific strengths
and weaknesses as opposed to trying out everything that “experts” say is hot at
the moment. Additionally, you are going to want to keep in mind that every
trader is going to have bad days as well as good and as long as your trading plan
is effective at least 60 percent of the time then you are guaranteed to be
successful in the long run as long as you stick to your plan. Switching things up
all of the time is only going to skew your results which will make it more
difficult for you to determine the true cause of any failures or successes that you
come across. Additionally, switching regularly is only going to make it harder to
learn the intricacies of your chosen methodology, making you less effective
when a difficult to unravel issue arises.
Trade indicators: 
Additionally, you are going to want to focus on a handful of
trade indicators that work for you and master them completely before moving on
to something else. This will allow you to find the ones that work best with your
trading strategy and your overall trading style. The best place to start is with
those that work the best in the timeframes you frequent.