YUMC Trade (broken double bottom)

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Consistency is KEY in trading

- People tend to forget that these gains didn’t just happen in a day. Sure, the profits were taken in a short period of time, however they were the result of a long process of education, trial and error, and even failure. 

- You must first learn consistency and give yourself the BEST shot at maintaining this career.

Here are some tips to improve your consistency:

1. Set Realistic Profit Goals

Saying that you want to make $200/day is more achievable than saying you want to make $100,000 from trading. This allows you to come to the market each day with a clear, realistic goal that will help guide you on your journey.

2. Don’t Take Unnecessary Risks

It only takes one trade to take you out of the game, and as we saw last week, no one is immune. Don’t try to nail that $10,000 trade if it exposes you to additional risk. Follow your trading rules and make sure you live to trade another day. Big profits will come with time – you shouldn’t be taking huge risks to chase them.

3. Appreciate Your Progress

Trading is great because it’s a constant challenge; you can always do better. That being said, this makes it so some traders are never happy because they always want more. Learn to appreciate your progress. If you are consistently profitable, you are doing better than 90% of traders and you need to recognize that. Try to understand the necessity of each step in the process of becoming a successful day trader. Even if you only make $50/day from trading, you are on the right path, as long as you remain consistent. Higher profits will come as you keep working at it.

4. Don’t Compare Yourself to Others

It’s easy to see traders making huge profits and wish you could achieve those same results. Suddenly, a $1000 gain may not be too exciting when you see someone else make $50,000 from a similar trade. DON’T COMPARE YOURSELF TO OTHERS. You don’t know their story. You don’t know how long they’ve been trading or how much capital they started with. Comparing yourself to others causes you to depreciate your own success and set unrealistic goals.

5. Understand Outliers and Take Breaks

If you have large profits or a big loss one day, sit back and take a break. You need to understand that these trades are outliers. Often times, traders experience the thrill of a big gain and come back to the market trying to recreate this success. This can be dangerous! This would be like winning the lottery and then going back the next day to load up on more tickets. Appreciate your win (or learn from your loss), and get back to trading consistently.

Looking for the "stormy weather" stocks.

 What do I mean by, "looking for the stormy weather?"  Quite simply, you can only make money on a stock if it is moving... or if it pays a dividend.   As a trader, you need a stock to be active.   You can't be trading stocks that are not moving.   Also, when you identify a stock that is moving, you don't know how long the move will last.  How many times have you bought a stock when it was really active, only to see it calm down and become "blue sky, sunny and no wind" or "dead."  As in dead money.  

So, the key is identifying a "stormy" stock.  Trade it.  Be out before the storm stops.   Move on to the next "storm."

That's the goal - each day. Trying to focus on quality and if they're working great but I don't want to exchange my time for hoping during the day. Either its working or I'm moving on.

Trade Rotation (float)