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Long Term Trading Profits
Long term trading profits for the day trader are like long term stock profits for those involved in long term investing. They derive from learning how to do the job and then doing it on a routine basis. Long term trading profits require a knowledge base derived from technical chart analysis, routine study, development of a technical analysis skill set, a well devised trading strategy, and the discipline to execute trades when technical analysis tools such as Candlestick chart analysis indicate and stay out of trades when Candlestick patterns do not indicate a profit will be made. Long term trading profits are certainly possible for the devotee of Candlestick chart analysis and Candlestick trading tactics. But, as someone once said, ninety percent of life is showing up. You need to anticipate where the profitable stock trading will be and show up ready to trade. Long term trading profits are for those who show up to work every day, hone their skills, learn from the mistakes that we all make, and learn to trade stocks more and more effectively with each online stock trading session.
The expression, long term trading profits, sounds a bit out of place in world of day trading where stock trades can be entered and exited in seconds. The fact of the matter is, however, that many day trading strategies lead to repeated small profits. In order to make a living out of day trading the trader needs to continually make successful stock trades over an extended period of time. Doing so will require that the trader become knowledgeable about picking stocks to trade, anticipate activity in any of a number of different market sectors, and maintain his skills in fundamental and technical analysis of stocks. Learning and using Candlestick charting techniques, the trader can identify promising market trends and anticipate market reversal. Being there and buying calls on stocks before the market rally starts is familiar turf for the accomplished Candlestick trader. It is part of how he obtains his long term trading profits.
We are not talking holding on to a stock for a long time when we talk about long term trading profits. That is still the province of the long term investor. Rather we are talking about developing a trading strategy and trading routine that routinely leads to profits. No one is ever successful on every trade he makes. Simply making more successful trades than unsuccessful ones is sufficient for long term trading profits. Good money management skills will help the trader set stop losses in order to get out of bad trades and minimize his losses. A routine of reviewing trades from all angles will enable the trader to see where things went wrong. Reviewing trading results will allow the trader to continually improve his trade selection, his technical analysis with Candlestick signals, his trading tactics, and his trade execution.