14 Skills & attributes part 9

Amateur day traders either do not plan, or they do not plan well. They rely on their impulses and habitual behaviors. Professionals plan on many levels and across various time periods.

Tomorrow’s day session

The current environment

The short term trend

The long term trend

When you plan as above, you should not be surprised by the actions of others. These actions make you set objectives and react to situations whether the market is in your favor or not. This planning will also allow you to be aggressive when your levels are spot on, taking a more of a risk-on approach when the situation calls for it.

Day traders think like chess players. “I will do this, and if the market does this, and I will do that!” This way, you set clear goals, think of what other markets players might do, plan the actions that will move you toward your goals, and always know the rationale behind your moves.

Day trading makes you think of contingencies. Not just one contingency, but multiple ones, as the market is fluid. This means that while prices can go up and down the rhythm of the market can change, and price fluctuations and trends can accelerate and decelerate (momentum).

Day traders consider a wide range of possibilities. Should something unexpected happen, they know how to react. Keep asking “What if?” way before it happens.

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