Simple Steps To Improve Your Day Trades (part 1)

Getting Started In tape reading WHEN embarking on any new day trades, the first thing to consider is the amount of capital required. To study tape reading "on paper" is one thing, but to practice and become proficient in the art is quite another.

Almost anyone can make money on imaginary day trades because there is no risk of any kind - the mind is free from the strain and apprehension that accompanies actual day trades; fear does not enter into the situation; patience is unlimited.

The trader of little experience suffers mental anguish if his day trades do not go his way immediately; he fears he made a mistake and a loss of his money.

All this is changed when even a small commitment is made. Then his judgment becomes warped, and he closes his day trades in order to get mental relief.

As these are all symptoms of inexperience they cannot be overcome by avoiding the issue. The business - like thing to do is to wade right into the game and learn to play it under conditions that are to be met and conquered before success can be attained.

After a complete absorption of every available piece of educational writing bearing upon tape reading, it is best to commence your day trades in ten share lots, so as to acquire genuine trading experience. This may not suit some people with a propensity for gambling, and who look at taking part in ten share day trades as being afraid and a ‘babe in the woods’.

The average lamb with $10,000 in capital wants to commence with 500 to 1000 share lots - he wishes to start at the top and work down. It is only a question of time when he will have to trade in 50 share lots – having lost the majority of his capital in large day trades. To us it seems better to start at the bottom with 50 shares. There is plenty of time in which to increase the unit if you are successful. If success is not eventually realized you will be many dollars better off for having risked a minimum quantity.

It has already been shown by experience that the market for odd lots (100 shares or less) on the exchanges is very active, so there is no other excuse for the novice who day trades in round lots than greed of - gain, or a get-rich-quick mentality. Think of a baby, just learning to walk, being entered in a race with professional sprinters!