Tips to a Big Trading

Do your Homework. Have scenarios in place in 4-8 stocks for both the long and short side of the market. This will give you a sense of confidence coming inot the day no matter how the day unfolds. Too many traders come to the market daily and try to "wing it" as the market unfolds.
Get control of leverage. It is imperative to understand how to use more or less leverage from trade to trade and day to day. If you want to have any chance of earning a consistent living from the stock market you will need to make up for all of those small losses. the only way to do that is to understand when to "size up".

Understand the probability scale. When you understand the probabilities of your trades following through versus you are just trading quicker momentum you will know before you place the trade how long you should be in the trade. This is accomplished by combining ALL the factors that go into making a trade decision, NOT just what your stock is doing.

Know when a tough day to trade is in front of you. This advice comes from one of our traders Kyle here in NYC. During one of our mentor sessions yesterday he was advising a new trader that when he is confused about probabilities or if it is hard to develop a scenario he steps away. I thought this was excellent advice. Learning how to not lose money is a BIG part of learning how to get paid.

Focus on fewer stocks or sectors. It is imperative to learn how a stock trades so that you can learn to manage risk on every trade confidently and so you can understand profit potential. In other words how much "slippage" can you expect if you need to execute a trade for a loss moving against you quickly? How much does this stock "normally" move when order flow is obvious? This will help you set profit targets or at the very least where you should begin to set a trailing stop on a profitable trade.

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