Day trading does not mean overtrading. Far from it. As we review our trading strategies, one or two trades a day is typical for us, and often we can go for a couple of days without a take.
Even in the defined methodology of our ‘conservative breakout’ strategy patience is a vital ingredient.
It is essential, however, that by being particular with our entries, we do not unknowingly manifest reluctance – which in turn can bring impatience.
To help negate this, we use a well-established method between ourselves of a plan, brief, execute and a debrief.
How does this improve our work? It makes our approach considered, open, exact and, therefore, honest. That is we review our plan in clear language, openly express our methods, know when to get down to business with focus and be forthright in what we got right as well as what we got wrong.
But what about the economy?
In our approach, the state of the financial market gives us relatively little concern. Over the last couple of weeks, traditional investors will be wondering (having enjoyed a most incredible stretch of profitability) what is best to do.
In contrast, we go from day to day taking each moment as it arrives with equal consideration. We are not concerned with external pressure other than the occasional economic calendar information a few moments before and after the news is released.
In a way, this puts us firmly in control of our possible gains and our losses (part and parcel of financial day trading). With a well defined and practised method we might even be very successful – maybe not each day but on average over every few days. And that control brings a sense of consistency and purpose.
Then we can let compound interest do the hard work.