Day Trading Misconceptions and Myths


everyone it’s marina via photo the
trader chick today we’re going to be covering the
most common misconceptions and myths about de tree because the deal is here that there are way too many
misconceptions that people think exists in the day trading in the street which
can be totally avoided and I just want to get past them right now because what
happens is and this happened with me and many others is that you believe that
these are true and they’re completely on true so let’s just get past them so that you
can start fresh and know that these do not really affect your trading
whatsoever ok the first one risk and upfront cash
all right there is definite risk as risk with every single thing you are going to
take on in life right you want to open up a restaurant and
there’s a risk they gonna call off of twenty thirty thousand bucks and not a
single person is going to arrive to your restaurant right so in my way of looking
at it you are putting up twenty thousand
dollar risk in day trade you have the control of what you risk this is called part of your strategy um
normally the way it works is between one percent of ten percent of your portfolio
as you start to understand the market that you are focusing on you need to go
back to the last video of what you should trade every single one of those
has a different risk level also it’s what your risk level is normally I don’t
ever risk more than sixty two dollars and fifty cents per trade for contract
right that doesn’t sound like too much so my
risk level isn’t high right on such risk versus reward you have to have a plan I go over this a lot more in the
beginners boot camp for day trading but without that risk management in place you will lose it all but that’s what
gamblers do right they just sit at the roulette table and just blindly put
money in you will never do that excuse me if you are a professional day
trader you will not do this ok your risk is fully managed fully
controlled and this is very important for you to understand you will not lose
it all it’s it’s just not possible right you
need to have control over it and that’s how it works ok so the second part of the first
misconception is the amount of cash to put right so so how much money do you
really need to invest in day trading ok besides the obvious of you do need an
education you would not become a piano player if
you didn’t hire somebody to teach you how to play the piano right so you will
need to put that into account there are many different academies many different
education I go over this a lot more talking about
the different types of education in my beginner boot camp but it’s it’s a
nominal fee right because honestly if you just go in blindly you will lose a
lot more than what you would have invested in your education so with that being said how much money
do you actually need in a broker’s account I there are four different markets that
you need to focus on normally a lot of the brokers will tell you five hundred
dollars in my opinion $2,000 is a very good amount for futures
probably forex stocks it’s different unless you work with
penny stocks you can probably get away with two thousand dollars stocks the
things you need to upfront a lot of money first to make any games ok so it’s a different way of looking at
it um but ten thousand dollars is not
unusual right when you hear $25,000 that’s totally untrue you do not need that much money you do
not need that much money and like I said with futures excuse me
$2,000 is plenty ok what kind of an education and what kind
of skills do you need to have before becoming a day trader you do not need any math any math at all I have no math skills whatsoever i use
my calculator for everything and finance and economics just those two words make me freak out I don’t know what they mean I don’t even
think finance and economics majors know what they mean you do not do not need either of these
ok these skills that you will learn about reading the market understanding
the market anybody can learn that anyone can learn
that the most important thing that you will eventually understand is discipline
consistency that’s it those two are the most
important once you have developed your plan okay
um I mean I was a travel writer and a fitness instructor I have zero math economics finance in
any of my background and anybody in the majority of the traders that I know none
of this none of them ok so you need to understand that
anybody and everybody can be a day trader third stress yeah we’re watching Wall
Street movies or the new york stock exchange floor and it just looks like
it’s just nothing but ulcers and chaos and stress happening right honestly you don’t need that ever since
i started day trading I’ve actually been laid on a spiritual
journey it’s very ironic I am NOT one to have
even thought of meditation or any spirituality anything but that’s what
they trade has done for me but it makes you do is it makes you surrender
yourself and trust yourself and that usually happens on a deeper level so when yours you know thinking that
stresses involved you have got to understand there’s good
stress and then there’s crazy unnecessary stress yeah for sure you’re
going to be a little bit stressed right you’re putting money on the line but
you’re gonna be due to stress like that with everything right but if you are
confident in your plan if you have complete trust in yourself and the plan
that stress is a good stress it’s like a performance on it’s like a performance high right normally all the athletes that we see
they just so stressed but Michael Jordan probably was so stressed every time he
was on that field but he was on the basketball court but he it wasn’t a bad stress right it was good
he is practice he knows he knew his moves and that’s what happens when you
are a seasoned trade right when you have learned and studied the market right and
I go into that a lot more in the cleaners boot camp for day traders as
well and we will be touching about a lot we will be touching that in this course
as well about how market moves and understanding market movements and
patterns once you understand that it’s not that
difficult right it’s it’s just sticking to your plan ok the fourth misconception screws I mean how many times we see
traders have three to twelve screens I have one I have one and i have two
indicators right and that’s actually brings me to number five the majority of the times you see
traders with so many screens it’s usually because they are trading stocks
on so they have several different stocks i should actually say one in several
right they have a dozen different stocks which has its own screen you need to be able to focus on each one
and then all those blinking lights the indicators of straining softwares
honestly puts me into analysis paralysis and I end up doing nothing you do not do
not need that many indicators or software treat and trading software
important thing to know if you are going to be looking into an academy you should really have your red lights
on if somebody is selling you a software or
is giving you an indicator that only lasts while you are with that academy or
you need to pay once you’re finished indicators are free there are hundreds of indicators that
are completely native and free this should be one of the first things
you should be looking at when you join an Academy if they are selling you an
indicator or software how to use the indicators that are already available that’s a totally different thing because
that’s learning what trading is about ok so again like i said i use two
indicators but then I learned about patterns and those and movement that’s great that’s just watching the
market that’s what we’re going to learn a little bit more in this course and a
lot more in the beginners boot camp so just remember you do not need more
too many screens I have one screen one screen sometimes
at home I used to it more or less I stick to one
screen I have two major indicators that i use
and that’s it and it’s just watching the market the
market mr. market tells you so much ok 6 this is a big one research and use ok so depending on the
market you are going into like i mentioned before stocks they require a lot a lot of
research so you will be spending time learning
about the different stocks and the research that’s understandable and many
other markets at the futures you don’t need to do any research for its you just
need to understand what is happening with the two countries that you are
focusing on that particular pair however news news is another big one ok so for the most part there are going
to be really big news you know like the treasure it is going to be talking
interest rates of unemployment percentages those are big news for day traders when
they come out and it’s usually between nine thirty in the morning eastern till
eleven in the morning eastern that’s usually when the major news comes out
there is the FOMC boom which is on Wednesdays and in the
afternoon so you don’t rate during those times right you let the market just
settle down and you know that there are websites that you could find tells you
exactly what’s going on however it’s the oven reviews that you
do not want to participate in and that is the news that is CNBC that’s what
they make all their money from jim cramer all these experts right it’s just non-stop news that their
babbling on it’s not true it’s completely
speculative and there’s a saying we have especially for the stock market by on
the rumor which is a lot of what they do first and then sell on the news remember they’re in it for themselves as
well oh so you want to stay away from you is you do not want to watch any
MSNBC’s you do not want to go into trading chat rooms and alert stock alert
groups you need to know the technicals you need
to know what the market is doing and you need to focus on that and that only even
when there are the big news like unemployment inventories of housing
whatever the big news those who cares what was happening who cares you let it right out and then you see ok
that was a positive thing that means the market is going up so you focus on that negative you focus
on that that’s as far as you need to worry about
news you do not need to give it any other weight and the last big one is
being in out of trades all day long so before I became a traitor I thought
that I needed to take a hundred rates I had to be in turn out action action
action right because this is what we’re seeing now that i have been doing this
for a while if I do one or two per day that’s great because the key and the
secret and the magic is knowing when to not get into a trait equally as knowing
when to get into a trade so once you understand that trading is
actually a passive for performance it is definitely a
performance activity but it’s more passive you it’s kind of like hunter
right I don’t condone hunting a hunter will sit and they will wait for
their prey right and that’s what give that’s what to me is all so amazing
about them snipers you know the patient’s the discipline they have to
know when is the right time to strike so if you want to think of it like that
hunter or a sniper in your methodology of going for the good trait they’re probably the best examples again
I don’t condone them i don’t think that they do the right thing but that’s
totally irrelevant right now I’m just representing their activity which is
actually if you break it down there quite amazing you know their patients their discipline
it’s amazing and if traders could bring that type of
patients into their trading they will definitely definitely succeed so
hopefully this will help you totally bust these ridiculous limiting beliefs
and misconceptions so that you can clear yourself of that
and start really focusing on what’s important and that’s what the market is
telling else so if you have any questions shoot them
over into our facebook group I will be happy to answer them i’m sure
many other people have seemed ideas same questions and concerns so it’s good to be able to share

4 thoughts on “Day Trading Misconceptions and Myths

  1. follow the "Trader Chick"…you will learn to trade. Join her.thankyou.

  2. the real myth is that long term trading is safer, thats what 90% of the people do and 90% of the people don't make money. the real money is made in day trading, just that we are in the stone age right now, people have no idea what they are doing. day trading is the safest most profitable less stressfull way of trading IF you know what your doing.

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