Intraday trading is difficult especially if you have a full-time job. You took a trade in the morning, you worked and then you lost money. But how do you quit intraday trading?
Buy and sell only after the end of the day. Set your orders only after market hours. Do not login to your trading account during the day or turn off your computer.
I stopped trading intraday because of high commission costs and stress.
Well, I do not like to sit in front of a computer every day. Doing that is so tiring, and not fun.
Let me ask you, why do you trade in the stock market? Do you want financial freedom?
What is your goal?
You want to earn money because you want to become rich. Also, you want to work less, am I right?
If that’s your goal, why trade intraday?
You have to find a way to stop it now because if you won’t, you can lose your trading account. I had lost my first $500 account before I realized how much commission I paid.
Yes, $500 is huge for me at that time, and I even cried for it. I could not believe how dumb I am.
Day trading success rate
The success rate of day trading is about 4.5% based on experience. Also, it is hard to make a living with a $30,000 dollar account if you are just earning 10% per year.
Now, if you don’t know that, you must have thought that intraday trading is worth it. Also, I suggest you read the article above.
The author shared his observations, and you will see that it takes a lot of time and practice to become successful.
Most day traders make the same mistakes over and over again.
What’s the end result? They end up quitting.
Instead of moving away from intraday trading, they stop everything and they never recover.
The level of success for day traders is low, and the expected income for a small account cannot pay for living expenses.
Now, if your goal is to leave your day job, is it worth working every day?
Intraday trading requires a lot of time and practice. Also, you have to watch the screen all throughout the day.
It is so stressful to do daily, you don’t want a life like that.
However, if you quit now, you may have a chance to be profitable.
Journal your trades
In order for me to motivate you to quit intraday trading, try recording your trades.
Document your entries, exits, profits, losses, and commissions.
Get your net income or loss after deducting the total commissions. Divide it into your starting capital.
How much did you earn? Or how much did you lose?
After everything else, deduct all the commissions you paid.
I hope you learned a valuable lesson that trading intraday is difficult, and the cost is so high.
However, transitioning from the lower to higher timeframe requires a good trading system.
Don’t worry I will share my experience so that you will know what to do.
Moving to the daily timeframe is a sweet spot. However, it does not necessarily mean it’s easy.
You’ve got to find a strategy that is suited for you. A system that you can execute.
So I urged you to read our recommended strategies above. In there, you’ll find more systems to use.
Let’s go back to our topic. Always record your trades, so you know the impact of your actions.
Review all your mistakes and don’t do it again.
I’m sure the first thing you will do is quit intraday trading.
Have a strategy with an edge
Find a strategy that has an edge in the stock market. Also, consider the daily timeframe as a minimum requirement.
It will help you to stay away from intraday volatility.
If you have confidence in your trading system, you are motivated to switch the trading period.
You will have more time to study the price action of the stock. Also, lesser trades can reduce commission costs.
Let me tell you about my experience. In the first year that I earned 10% from my account, I felt like I had improved a lot.
Well, I did not know at that time that I had raked a total of 15% commissions.
My trade records shocked me when I reviewed it. I could have earned about 25% that year.
If only I realized early on my trading mistakes.
Why did I bring up the trading commission again?
It’s because I want you to choose a trading strategy with a low trading cost.
If you want a higher return, you have to trade less. However, do not forget to use a proven system that you can execute.
Don’t be a trigger happy
When it seems the price action is in our favor, our fingers are always ready to hit the buy button. Common problems of traders are being a trigger, happy guy.
You just love to press the buy and sell button without thinking.
Well, it is normal, but you have to stop the urge.
One common mistake is the urge to add to losing position. You average down to make the trade less painful.
Doing it is not really a good idea. You know, it’s better to add to winners.
Well, our trading platform was designed to entice us to buy and sell. If you are a trigger man, you know what will happen.
Here’s the deal, when you buy more of a loser you increase your possible losses too.
For example, a $5,000 position can become $10,000. A bigger trade can have a huge loss.
If you add a margin, it can wipe out your account without you realizing it.
For every action you take, always take into account the effects that it will make.
Never press the buy and sell button if you are not sure what will happen.
For some, they call a friend to help. Well, you can have a partner to help you with it.
Tell him to evaluate your trading decision before you press the button.
Buy after the trading hours
I usually buy after trading hours. However, I do it only after dinner, and I set it at the open for the next day.
That way I can review the price action first before I decide. Unlike intraday trading, the market can not force me to hit the buy button.
The advantage of being a Quant is having a set of rules to play.
You can find quant strategies on our recommended strategy page.
Well, I just scan the stock universe to find a stock that meets all my criteria. If I found a good stock, I buy the next day at the open.
It is stress-free, but you have to follow your plan.
What I like about being a quant is that I already use a backtested strategy.
So, I just have to execute a proven strategy with less stress.
In my case, I have chosen a simple strategy that allows me to trade only at night but execute at the open of the market the next morning.
The good thing about my trading system is that I only trade every once or twice every week.
Sell at the open
Just like my entry, I also sell at the open of the stock market. However, there must be a compelling reason to get out of the trade.
I look like a position trader but in reality, I am a momentum trader.
You can also call it a trend follower.
At night, I review the price action during the day. If I see that the stock is showing weakness, I immediately sell the next morning.