Here are some ways I learned to sit, be patient and avoid the big losing days. Don’t be anxious –
There are 6.5 hours in the trading day so be patient and try to avoid trading the first 15 to 20 minutes.
Use this time to observe and get a feelAlways have a reason to enter a trade – Stop guessing. Trade as if you were training other traders and being held accountable for each trade. (Trust me on this one.)
Observe yourself trading with discipline.Probe (Scale in) -- If you want to take a position of 300 shares enter it 100 shares at a time. If you’re wrong the loss isn’t as bad and you spend less in commissions.
Have a stop-loss every day – Every trader should have a maximum amount they can afford to lose each day. When you hit it STOP trading!Avoid tight ranges and low volume – This is a time to sit on your hands.
Wait patiently for the market to pick a direction. Narrow range days often follow a giant move from the day prior. Buyers and sellers battle for control after such moves. When you spot this scenario, stand aside and wait to see who wins. Then join that team. If you insist on trading a narrow range day actively, then fade moves and go for small scalps.
Day Trading is a profession, so try to treat it like a business and not like a black jack table. Trade when it’s hot and learn to sit on your hands when it’s not. There aren't too many businesses that end each day in 100% cash with no inventory.
Protect that cash.
