Stock Day Trading System
Finding one that works for you

A good stock day trading system is one of the key components to becoming a successful day trader. This system should be one you feel comfortable with and provides consistent profits for your account.

This is far different from what most new day traders do. Lacking a system or plan for approaching their trading day, most new day traders just shoot from the hip, without any trading plan. The result is a mixed bag of good and bad trades, with no understanding of what worked well, what failed, or why.

A good stock day trading system can stand the test of measurement. It can handle the questions of average percentage gain or loss per trade, the percentage of wins vs. losses, and the technical difficulty of executing the trade. (For more information on questions that a good strategy should answer, also see this section on stock day trading systems. ) I don't care how good someone's system looks on paper. If it doesn't produce good results for you , after you've given it sufficient time and trial, then you need to find a different system.

When I was in my first year as a day trader, I tried multiple systems built by others and sold online. They might have worked fine for some people. But, they didn't work for me. So, I set out to build my own system. Over the next year, I focused most of my chart studies on gap down stocks. I've tweaked the strategy so that it now produces significant results for me. This trading system is now 80% of my focus as a day trader.  It is also the basis for the day trading chat room that I lead.  (Click here to find more information about the chat room.)

Although I continue to study and practice other strategies, it's nice having a bread-and-butter trading system that I can rely upon for consistent profits. I believe that every day trader needs to find such a system. It makes your trading day so much more pleasant when you have a list of stocks given to you each morning, based upon your criteria. And you have a plan for how to trade those stocks. You know what you're looking for and when you see it happening on the screen, your brain locks in and you execute better trades.

Here are a few of the reasons why I like gap down stocks.

1) Gap down stocks occur everyday in the market and give me a list of stocks to focus upon as a day trader.

2) Gap down stocks provide volatility and every day trader needs volatility (played correctly) in order to create substantial profit.

3) Gap down stocks are played in the early hours of trading and the play is often finished by noon. This means I can make a nice profit before lunch and just take the rest of the day off - if that's what I wish to do.

But those reasons fit my lifestyle and my fondness for charts. As a day trader, you can adopt a system that fits your style or you can create your own stock day trading system. I won't go into detail here about how to do that because it involves a lot of testing and re-testing. But, until you become a more experienced day trader, you might want to adopt a stock day trading system from someone else and practice it until you're good at it. This will keep you from chasing too many rabbits and attempting to master too many strategies without ever getting good at any of them.

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Stock Day Trading System
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