For every ten traders that try their luck at day trading nine of them will go broke. It is just the way the game works. Famed trader Richard Dennis had this to say about day trading:
If I’m buying and selling in the same day, it’s always to take a loss. I haven’t made a profit on a day-trade in five years.
Having a plan and sticking with it is also something Dennis stood by in his day trading advice:
“When you have a position, you put it on for a reason, and you’ve got to keep it until the reason no longer exists. Don’t take profits just for the sake of taking profits. You have to have a strategy to trade, know how it works and follow through on it.”
Without a solid plan, and the nerves to stick with it, the markets will exploit you, take advantage of you, and then in a sad quiet fashion…. leave you for broke on the side of the road.
Find out more about the Turtle Traders.