What Is A Successful Day?
OK, let’s face it, a successful day’s trading makes us money. But there is much more to it.
Money is a by product of a lot of other processes you have to go through each day. It is far better to focus on the process rather than the outcome.
The biggest thing you should focus on is control. Control of your emotions, control of your account, control of your day. The best traders are able to make each day a series of very low risk “grind it out” type trades. Your day should never hinge on the success or failure of one trade. Each trade should just be the next one in a series of thousands you will make over your career. So make sure you have lots of low risk strategies that mean you can build a day every day with no big swings.
You don’t want big swings in your profit and loss because it can be emotionally destabilizing but most importantly you will test the boundaries of your daily risk allowance. Your goal each day should be, primarily, not to lose money. Focus on your defences at all times and the money making will happen. I use my position sizing to control my day. When I am on a series of winning trades I will start to increase how many contracts I trade. If I am having a bad time I scale back and cut my trading size. I aim to always be trading my largest trading positions when I am trading my best and vice versa. That leads to a successful day’s trading.
This is why I am a huge advocate of day trading, especially scalping (looking for lots of very low risk in and out opportunities each day). If you trade longer term and only look for one or two trades a day you are going to end up having your entire day hinging on one trade. It is all or nothing. That isn’t building a day. But by trading lots of opportunities throughout the day you can really work on that control where you can focus on building a day by keeping control of your account using trading breaks and position sizing and you have lots of opportunities throughout the day to build your account.
On an average day I will do about 20 trades. This is all focussing on patterns in the order book, which I teach in the The Day Trading Mentor course. Spotting where large market participants are moving their positions and I jump in for a couple of ticks, bank the profits and move on. Typically out of those 20 trades I look for about 14 or 15 of them to be winners and the rest losers or scratch trades. If the losers all come at the beginning of the day I will scale back and trade small size and my ONLY concern will be to finish the day slightly in profit. If I start the day strongly I will make sure I increase my aggression and this is when those real stand out days happen. This is trading with control. And trading with control makes a successful day’s trading.