“What are you trading today?”
That’s one of the most common questions I get from new traders. As a day trader, I open and close my positions on the same day, on most trading days. It doesn’t mean I have to trade everyday.
One of the biggest mistake, new traders make when starting out is believing that the only way to make loads of money is by trading every day. This is also one of the biggest reasons why almost 80% of new traders go out of business.
New traders usually think there are two positions you can take in a trade. To long or to short.
But experienced, successful traders know there is a 3rd position.
It is to not trade at all.
If a trader believes he needs to trade every day, they will be very prone to force trades that are most likely low probability trade. To become a good trader, probability needs to be on your side. And punching in low probability trade on days when you should be sitting out only means you are taking unnecessary losses.
To change the approach a new trader comes into a new trading day, they should be asking
“What are you watching today?”
Then they wouldn’t be forcing themselves to trade today.