Study Guide for Come Into My Trading Room - Forex Factory
Study Guide for Come Into My Trading Room - Forex Factory
Study Guide for Come Into My Trading Room - Forex Factory
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DAY-TRADING<br />
Answer 48<br />
S I X<br />
D. 1, 2, 3, and 4. Give yourself four points <strong>for</strong> choosing the right answer.<br />
In day-trading, profits are smaller and expenses are higher. There are<br />
long periods of “dead time,” but when a signal comes, you must recognize<br />
it instantly and trade without pausing to ruminate. Losses are generally<br />
smaller than in position trading because losing trades are closed<br />
out no later than at the end of the day.<br />
Answer 49<br />
C. 1 and 4. Give yourself four points <strong>for</strong> choosing the right answer.<br />
Day-trading demands a much higher degree of concentration than<br />
position trading because it does not leave you time to think. Impulsivity<br />
is deadly because you have no time to correct your mistakes. Daytrading<br />
is an expensive proposition that generates high commissions and<br />
leads to purchases of software, data, and other tools, that are the main<br />
reasons why brokers and vendors love it. To succeed, you must face<br />
your impulsivity and work to reduce it. A written trading plan is a useful<br />
step in that direction.<br />
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