Why constant wins are good for beginning trader
Frequent wins give you positive feedback and motivate you. Frequent losses sap your confidence and energy. Learn methods that will give you frequent wins early in your trading career. It will help you a lot.
One of the reason swing trading methods are so popular among active traders is because they give you frequent winners when done right. That helps you stay motivated and focused on trading.
If you do not quickly find success in trading it is most likely you will give up trading. There are very few human activities where humans persist if they are constant losers. that is why the often given advice of best thing that can happen to you at beginning of your trading is to lose all your money or to learn to lose first is wrong advice.
If you make money in first year of your trading you are more likely to continue with it. If you struggle it is most likely you will give up.
Do not underestimate the power of winning trades to motivate you. If I had not found a winning trade that more than tripled my account in few months right at the beginning of my trading career I would not have stuck around for next 14 years and grown my account multifold.
That is why it is important to have positive strokes from winning trades for traders to be motivated.
So if you want to learn to trade learn methods which will lead to frequent profits and not methods which do not have immediate feedback.
4 comments:
You previously mentioned that if you have a smal account, we should focus on finding a setup that can generate alot of trades so that the account grows faster. Would you suggest that momentum burst is a good setup for this? Does it work for day trading also?
Yes
Ok but in a dialy timeframe the setups are more cleaner with your 2lynch method. Going down to more daytrading timeframes the setups are often not so clear. Is there anything in particular to think about when trading faster timeframes?
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