When you enter into a trade early on in the day and the market keeps on moving in your favor, should you keep that trade overnight? What about over the weekend? Naturally, those questions only apply to money making trades. Accepting a loss overnight is purely for losers.

An initiate needs to shut down her day trades at the end of the day, but a master trader has the choice of keeping them overnight. When a market closes within a few ticks of its high, it normally goes past it the next morning. A market that closes on its lows normally baits with lower lows the following day.

Now nothing is guaranteed, as the market may close on its high, get hit with atrocious news overnight, and open sharply lower. This is why only seasoned day-traders have the choice of holding their trades overnight.

Research, knowledge, and discipline cast your trades on a more composed, more intellectual foundation. You must research the past times, calculate the odds, and arrive at schooled conclusions for the future. When you day trade, there are dozens of minutes when the market goes nowhere, allowing you to estimate the totals.

Some trader use two computers and have one with their stock trading station loaded on it and another for research.

Look at one year’s history for the market you are trading. Create a spreadsheet and start asking yourself questions. When the market closes just five ticks from its daily high, how many times did it reach a new high the next day? How far did it go the next day? What about on days when the market closed within five ticks of the lows? How low did it go the next day?

When you arrive at the solutions, ascertain what occurred when the market closed within 10 ticks of the high, and so forth.

Pros are given to deal in the same market month after month, even when there is a high turnover of amateur traders. Pros have become accustomed to trading a certain method, and to trade with them you must identify those patterns and identify them on a stock chart.

You need to base your trades on truths and chances, not on gut feeling and desire. You must perform your own research. You can’t purchase the solutions, because only determining them yourself will give you the confidence to trade.

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