To me, the beginning of the new year should mark the chance to set new goals and push yourself to unreached limits.
This year I upped the stakes. Needless to say, I had my work cut out for me. Turned out, I underestimated myself. Here now, are the lessons I learned while accomplishing that. This is true for anything, not just day trading. But without a doubt, the first couple of weeks were the toughest.
In that time there was essentially zero margin for error and my account was only few bad trades away from dropping below the minimum balance. My main tools in this time were hotkeys, so that I could get in and out of positions quickly, and as much discipline as I could muster. To make the most of these trades and to cut back on comission fees, I was dealing with a minimum amount of transactions, handling a lot of volume, and relying on momentum to quickly scalp breakouts before other traders.
I found good success with this strategy, so long as I kept my expectations in check. That increased account equity really helped speed things up in the following weeks. Simply by virtue of being able to make more trades and effectively scale my position I was able to be more aggressive. While I was still not out of the range of completely tanking the challenge, I managed my risk effectively enough to minimize potential and actual losses. In fact, I was looking to have a huge end to January.
To my surprise, I would hit that amount and then some much sooner than I first thought. It was February 2 when I had a massive day for the challenge, as well as a high-point for my career as a trader. Still, my accuracy was still around 67 percent overall. March, the final month, started really strong.
The main takeaway I got from the experience was that having a strategy and remaining consistent is essential to finding success as a trader. There were times during the challenge where I was putting considerable pressure on myself to reach these goals I had set, and at times that pace worked against me by compelling me to alter my strategy and chase trades.
I had this anxiety that I needed to continue making breakneck returns or make up for losing days that I would lose sight of my strategy and end up not making as much as I could have on a trade or even ending up down because I was too aggressive. The best example of this is actually the days following when I hit my goal. I think those down days, following the success of my challenge, really encapsulates why having a sustainable strategy and a level head will do more for your trading in the long term than hitting insane returns.
Chances are you will only give most of it up in the next few days by trying something risky than if you had just stuck to what you knew works and taking opportunities as they appear. This post is sponsored by Warrior Trading, an editorial partner of Benzinga. We collaborate on stories that are educational, or that we think you will find interesting. Benzinga does not provide investment advice.
Membership is Free What are you waiting for? Free Account Login Click here to access your premium account. Contribute Login Sign up. Benzinga - Feed Your Mind. Ross Cameron - Warrior Trading. May 10, The hardest part is getting started This is true for anything, not just day trading. Increasing my trades while managing risk That increased account equity really helped speed things up in the following weeks.
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