Day trading stock, at this level of profitability, is obviously unique.
Unlike other individual financial instruments traded, there are thousands of stocks to choose from, any one of which can provide day trading opportunities (otherwise known as big money wins) – any trading day, at any time of the trading day.
This makes stock day trading exciting, and for those who know how, extremely rewarding. For those who master the new stock day trading game with a coach in a winner’s stock trading room, the opportunities for learning, not just stock trading, and wealth building are unlimited.
What is the big payoff that everyone seeks?
To become a successful day trader, with profitable business performance, where they can make thousands a day, any trading day.
What’s required to generate this kind of money in the stock trading business?
Of all the success factors, it comes down to three key elements:
First, you must stop trading on your own and start trading with a world-class stock trading coach (like a world-class tennis player learning and performing with a coach to get to and stay at the top of the game)
Second, you need to be playing (trading) a winner’s game (system) that your coach recommends, not an old-school game, but a stock trading game big money winners play
Third, you need to gain the confidence, competence, and performance results consistent with those of a stock trading winner, again, facilitated with your own personal coach at your side.
Here’s a look at one aspect of stock day trading, from a winner’s perspective.
While day trading, it’s the job of the winning day trader to find stock trading setups – stocks that present opportunities to make substantial money – what we refer to as stocks in a “tension” state.
A stock in a tension state is simply a stock with an intraday price movement substantially away from its price balance price or the price at yesterday’s close, technically speaking, when you view stock trading charts.
Viewing a stock in a tension state would be much like viewing a pendulum with the ball pulled far away from neutral enough that, when released, it’s movement tends to accelerate toward its neutral position and beyond.
Stocks, like the pendulum ball, tend to seek a balanced state as well and like the ball, they return to balance and beyond, and then fluctuate above and/or below a neutral price as they eventually return to a state of neutrality, balance, or non-tension state – above, below, or close to the point of beginning, price wise.
This is the price action winning stock traders live for and thrive on, day by trading day.
This new-school trading makes winners feel both fulfilled and alive. Let’s take a look.
The winner’s focus is to trade this action to win (not the money involved) one or more trades during the trading day – that can generate $500 to $2,000 and more per trade, depending on lot size (the number of stock shares traded). This form of trading to win, that is, absent the focus on the money while trading, is not to be confused with gambling which is what losers love to do at Las Vegas and while day trading stock or any other financial instruments.
Trading on your own, without a coach, using any of the hundreds of old-school, gambler’s stock trading systems, lacking stock day trading confidence, competence, and a history of success while day trading is precisely why we say that 98% of all traders are losers – not profitable and otherwise dissatisfied traders.
Thus, only 2% of traders worldwide fall into that category of day trader – winners, consistently profitable winners.
Winners own the game – the rules, the software (with algorithms reflective of losing trader knowledge and trade execution patterns), when they make markets and stock prices move the most.
We designed our game to ride the coat tails of the 2% (who are intent on “killing” the crowd, the 98%), for our fair share of the action.
So, there are three games being played in the stock market, options, commodity, Forex, or any other markets: the winner’s game, the loser’s game, and our game. (We only trade stocks.)
Day trading stock this way, we find, is a far more interesting and relatively stress free approach to the day trading losers are accustomed to experiencing.
Stock day trading involves the performance of an individual company or companies, many times with familiar products and services exchanged locally and globally, in many instances involving companies managed by recognized leaders in their field.
Both technical and fundamental data influence stock investors, swing traders, and day traders execution decisions.
Each stock has both a technical (long and short-term price action history – charts) and a fundamental (financial performance – balance sheet, profit and loss statements, and earnings histories). This opportunity to trade the price action on any of thousands of stocks, any trading day, and time of the trading day, makes trading stocks far more interesting, and frequently more challenging than other form of day trading.
So, what we do as stock day traders is far more interesting, exciting, and very financially rewarding.
Our system is also quite simple as we only focus on only 20% of what losers watch, trade a fraction of the time and thus experience a fraction of the trading stress, and as such, we have the energy to trade well when opportunities present themselves.
The game has changed, so have we, and so can you – should you qualify.
John McLaughlin, Stock Trader Consultant / Coach / Mentor