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Set your daily goal as a day trader

ВрI encourage you to have one simВэple goal every day of your life as a day trader; attempt to end the day with a profit. Place no dollar amount on the profit or it may distract you. To set a goal too high would be unrealistic and to set a goal too low might be unfair. However, to set another type of goalтАФthe goal of following your rules and being true to your methodsтАФthis is the goal of the day trader. If, however, you do need to establish yourself a goal in terms of dollars, then tell yourself that you will strive to end each day with a small profit at the very minimum.

7. Prepare for the end of the day. The disciplined day trader knows that the end of the day is, most often, the end of all trades that day. There is a specific time limit on how long a profitable trade may be carried during the day. The end of the day is, after all, the end of the day, and positions must be closed out. Some of the techniques I have discussed clearly indiВэcate market exit under very specific circumstances, and others are more adapted to exit on the close of trading. Ideally, a profitable position will be kept for as long as possible. It is not uncommon for market moves to become accentuated toward the end of the session and, therefore, for considerable profit to be derived from your trades as the day draws to an end.

As the end of the day approaches, therefore, I want you to be more and more inclined to take your profit at the slightest indication that the existВэing trend may reverse itself. Unfortunately, this is, many times, a judgВэment call rather than an objective formal procedure. An intuitive sense may need to be developed in order to achieve this goal. No matter what some traders may tell you about the tremendous systems they've develВэoped, the fact remains that it is impossible to day trade without some degree of judgment. Some things in the markets just aren't regularтАФ they're random events which have no prescribed method of response. It is my most sincere hope that what you will learn within these pages will help you make such judgment calls successfully.

In view of the above, make certain that as the end of the trading day approaches, you continue to raise your stop loss (mental or actual) closВэer and closer to the current market price, thereby allowing the market to get you out when the trend reverses. In addition, there are certain types of orders you can use (previously discussed) which can help considerВэably. But remember, your goal is to be out by the end of the day.

8. Don't let good profits turn into losses. Many a good day trade has become a bad day trade, by turning from a profit into a loss, due to poor intraday risk management. Please remember the rules I have given you about raising stop losses (mental or otherwise) to the point of breakeven plus commission. This is an important rule which you must not violate. Preservation of capital is quintessential to consistent success as a day trader.