Importance of a Trading Strategy
Why all the fuss about having a day trading strategy?
Can you simply trade by feel? It's possible; but I don't recommend it.
In all my years in the investment industry, I have not met a day trader that has successfully traded by feel - without a strategy. When you trade by feel, you could become a slave to your emotions. Your feelings are not good day trading companions to have. Don't believe me?
Try trading this way for a few weeks. You'll notice that the decisions you will make are normally contrary to what is profitable. One way to possibly avoid falling prey to this emotional method of trading is by following a well-defined day trading system, which should include proper entry and exit points, proper placement of stop losses, and smart money management.
The system should be as specific as possible to avoid the anxiety that comes with not knowing what to do in a particular situation. There are a lot of day trading systems that you can use - just make sure that the system is not too complicated to avoid confusion during the initial trading process.
Back to trading education.
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