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How Do I Know When to Increase the Number of Contracts I Trade?

There is no hard-and-fast answer to this question. While somi professional traders will give you a formula by which you ma1 determine when to begin trading larger positions, I do not believi that the formula approach is best. What's more important than ; formula is your own sense of comfort. Some traders can feel ver comfortable trading 20 S&P contracts at a time, while others ball at even one contract. But remember that confidence in tradin; can't be the only variable. False confidence and overconfidenc can both be invitations to failure in day trading (or, in fact, in al forms of trading). In order to be successful in trading more thai one contract and more than one market, you will need to evaluate your success as well as your desire (or lack thereof) to trade multi pie contracts. I know of no concise formula for doing this.

Should I Consider the News or Fundamentals in My Day Trading?

If you're a technical trader, then you must ignore the news. Thi news can often lead good traders astray. But the news can also be your friend by providing you with excellent entry and exit point for your trades. A very bearish piece of news followed by a techni cal buy signal is an important event. The news says one thing, bu the market says another - and the market usually wins. If you usi the news, then do so for the purpose of taking positions oppositi from the news based on your methods. Obsessing about the news about reports, or about anticipated events is not part of technica day trading.

How Can I Stop My Broker from Talking Me out of or into Trades?

It's a sad but true fact that traders are all too often insecure about their day trades (and all other trades as well). They allow themselves to be talked out of and into trades. But the fault is not that of the broker. The responsibility belongs entirely with the trader. Naturally the trader will attempt to blame the broker. This is often unfair. The best way to avoid such problems is to establish an understanding with your broker from the start. Tell your broker that you only want advice when you ask for it. Tell your broker that you will close your account if the rules you establish at the outset are violated.

Some of you may decide to work directly with a broker. In such cases the above would not apply. However, remember that if you work with a broker and if you respect the broker, then you must follow what the broker tells you. But remember that you can just as easily subvert what your broker tells you as you can subvert what your system tells you. Without discipline and follow-through nothing is possible.