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Day trading is a lonely game

аYou will need to maintain your composure while all those around you are losing their heads. In order to filter out the "noise," the day trader will need to develop a number of procedures - at times mechanical, at times psychological - to close off the potentially deleterious impact of news and inputs that are extraneous to the system he or she is using. This would not be the case for day traders who use the news as their method of trading. None of the methods described in this book depend on the news for their efficacy or signals. Hence, my advice is that you develop or amplify upon your ability to shut off inputs that may negatively impact your trading. Note that being impervious relates not only to market inputs but also to personal events in your life that may affect your trading.

Should you get some distressing news from home, should you have a disagreement with your mate or spouse, or should you have some emotionally evocative news about friends, family, or business, my advice is either to deal with it after the markets have closed, or if you are unable to shut off the impact of the event or events, to immediately exit your day trade positions.

ж Contrarian attitude. One step beyond being impervious is the ability and willingness to be a contrarian. The profitable opportunities in day trading often present themselves when it seems least likely that they will work. The profitable day trader may often have to buck the prevailing sentiment - selling when it seems that the entire world wants to buy and buying when it seems that the whole world wants to sell. If your trading system or method signals a buy when the market is plunging, then you must buy. If your trading system signals a sell when the market is soaring ever higher, then you must sell. Acting contrary to prevailing public and trader sentiment can only be achieved if you adopt and maintain a contrarian attitude to market opinions.

ж Aggressiveness. The marginally successful day trader will need to be somewhat aggressive, impervious, contrary, confident, and decisive. Developing these qualities and applying them consistently to the markets will likely bring you success if your trading methodologies have merit. However/the truly successful, highly profitable day trader will need to be highly aggressive. By this I do not mean that you will need to bust heads or curse at your broker. It does mean, however, that you will need to do the following:

ж Pursue your broker relentlessly if you are waiting for confirmation of an order execution.

ж Pursue your broker vehemently if an order has been missed, misplaced, or incorrectly executed by the broker, the floor trader, or other employees of the firm.

ж Demand honest and reasonable price executions on market orders.

ж Be willing to diversify into several markets, trading all at the same time if necessary.

ж Maximize your results once you have learned to trade and once you have proof that your systems or methods work. In order to maximize your results, you will have to trade larger positions, thereby taking more risk for more potential profit.

ж Self-Control. To a given extent, self-control in your trading is very much a function and a combination of all other qualities that I am discussing in this section. Being decisive and persistent, as well as having confidence in oneself and in one's system, are highly important in maintaining the self-control required for effective day trading. But I stress here that self-control is very important, since it is this quality that will prevent you from deviating from your system and/or from placing orders willy-nilly based on feelings rather than on facts. While feelings are important in relationships, the lack of feelings is important in trading.