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Should You Let Your Profits Run?

Knowing when to accept your profits is key to successful day trading. However, many people often think that you can earn more by letting your profits run. This strategy almost always fails, and it is why I find that setting profit targets is one of the few ways to guarantee that you turn a market gain into a monetary gain.

The $700 Billion Bailout Plan – A Good Idea?

We have all heard plenty of talk, both positive and negative, about the $700 billion bailout plan, and there are now rumors of similar plans in the works. The discussion dominated the recent election, and it continues to be a primary concern both on “Wall Street” and “Main Street.” Many people who have never concerned themselves with high level economic issues are finding themselves writing, or being solicited to write, letters to their congressmen and women in support of or opposition to the plan.

The High Cost of “Free”

Who knew that “free” really meant “expensive”? That may seem like a contradiction, but day traders can easily find themselves in a situation where it turns out to be true.

I teach a number of strategies that require software that displays tick charts. However I often have students who tell me that they use such-and-such piece of software that will not display them. But they refuse to change because the software they are using was free.

Day Trading At The Beach – Can It Get Any Better?

Day trading attracts plenty of hype. Slick vendors want you to believe that you can trade whenever and wherever you want. You could even be on vacation and make money at the same time. They push the image of someone with a laptop on the beach, ticking off profits in between swimming, building castles with the kids, and taking romantic walks with a tanned, beautiful someone by your side.

This dreamlike image is, of course, just a dream. You cannot trade at the beach. And, believe me, I have tried. I have done my best to live up to this dream of making money in luxurious leisure. But there are some serious problems with that image of the laptop at the beach. Three serious problems in fact.

How Many Markets Should You Trade?

Too often, I hear from traders who insist that they “specialize” in a single market. Although they may feel a sense of comfort and even mastery by trading exclusively in one market, this kind of approach is a serious mistake. As day traders, we are interested in profitable markets. But what defines a profitable market has nothing to do with the kind of market it is; rather, it depends on how it is trending. Consequently, a successful trader should commit him or herself to trading trending markets, no matter what they are.