Hi and welcome to my website, you might be wondering why a website called Simply Additions is posting about day trading, well that’s because:

1. I’m the owner and I fell in love with trading stocks.
2. This website is already award winning for my Home Addition and Home Improvement Advice content, but now I’m after helping people make some additions to their bank account by learning from my posts and from the resource links I point out to you.

 

Don’t worry this article is about buying a Bull Flag and making profit, but I also want to establish a few things for my visitors who are maybe not used to the idea of trading stocks for profit.

 

I started trading stocks fulltime in January of 2018, so that’s only 10 months ago! It took me about 7 months to really understand the day trading game enough to make proper trades, but I do believe that if I didn’t get lost in the sales jargon of a famous day trader and his chatroom, I could have learned the game a lot faster.

 

Anyways, Bull Flags are one of the best long biased trading patterns you can profit from. The pattern looks similarly to the picture shown on this page. You have either 1 line (candle) or maybe 2 or 3 lines (candles) that represent the vertical flag pole, then you have a series of candles that make the entire set of candles look like a flag pole.

 

In the beginning of your day trading or swing trading education you learn about bull flags and you get excited about them. But if you’re anything like me and the countless other people out there, you pretty much just stare at them and watch them work 80% of the time and always hesitate and second guess yourself as to why you shouldn’t get into the play. Well I’m going to tell you how I conquered my fear of buying bull flags and making money from them instead of just seeing their bull run to the top without me.

 

Why 90% of New Traders Hesitate to Buy a Stock Presenting a Bull Flag? 

1. The most common reason is because they have seen this pattern and other famous stock patterns like the Cup and Handle pattern fail.
2. It’s true, every time you see a Bull Flag or a Cup and Handle Pattern the stock is not going to run. But 80% of the time as long as the stock has the attention of the day trading mob, or day trading chatrooms, the stock will run.

 

 

 

Oh sure, but what about the 20% of the time when the bull run doesn’t happen? Well the answer is simple, you get out of the trade ASAP at your stop loss or even before your stop loss if you loose faith in the bull flag.

 

Most day traders don’t become profitable because they cannot execute getting into or out of a trade on time. The reason is because they are scared of taking a potential loss, or scared of realizing the loss that they are actively staring at in their real-time P&L statement from their broker.

 

What the Trick To Getting Over Day Trading Hesitation? 

You have to realize that 1 stock trade is not going to make you rich and hopefully 1 stock trade is not going to make you poor. The trick to becoming part of the 10% of day traders who actually make money is to do what they do.

 

What Do The Top 10% Day Traders Do To Be Profitable?

1. They set a mental stop loss before getting into a trade. I normally set mine at $50, or .10 cents per share. I’m okay with taking a $50 loss, I’m not okay with taking a $200 loss, so I keep my finger on the trigger whenever I’m in a trade and if I see the time and sales tape display my stop loss price, I pull the trigger and live to trade another day.

 

Today a trader in the chatroom I’m in blew up their account on ticker $SAEX and lost $10,000 in cash! The trader didn’t say if their new to the game, but they were signed on as a guest and most good traders who stuck it out to learn all the rules wouldn’t blow up their account in the first place.

 

2. Seasoned day traders don’t hesitate because they trade like a robot, if the stock price hits their mental stop loss, they get out and that’s it. I personally had problems with taking small losses for many months, I did the tried and true hold and hope the stock price would bounce back up, sometimes it worked and other times I lost a few hundred dollars!

 

I had a mental block about losing my commissions, but I rather lose $10 in commissions and $50 then loose $250 plus the commissions which did happen to me.

 

Trading is not about being right, it’s about knowing what to do, and taking your emotions out of the equation. Our emotions will make us trade irrationally. Just because a pattern like the Bull Flag is supposed to work 80% of the time, it doesn’t mean it’s going to work 100% of the time. So if you happen to enter a trade and it’s not working GET OUT, it’s that simple.

 

In the beginning you have to force yourself to stop out of your trades when they’re not working, just remember even though you took a loss, you still made a good trade. Why is that? It’s because professional traders who MAKE money day trading do exactly that, they exit the trade when it’s not working, only newbies hold and hope. And like I said before, people who don’t treat this like a business with set rules, they blow up their account, lose all their trading money, and never trade again.

 

 

You can get lucky a few times and make a lot of money, but if you don’t know how to play the game properly, it won’t be long before you lose all your money.

 

So I think that’s where I’ll end this today, because I want you to watch my live trading video of me playing the Bull Flag Pattern and exiting the trade in profit. I could have made more if I got in sooner, and if I got out at its peak, but as I explained in the video I thought that ticker $IGC would at least try going for $8.50, which it didn’t at this time. However, later on that same day, that stock went bananas!

 

You can make a ton of money day trading stocks, but FIRST learn all the rules the pros use, otherwise you’re not going to get very far.

 

BTW: I plan on posting all my lessons learned right here on SimplyAdditions.com, so if you like my straight talk and you think you can endure more of it to learn the game, I suggest you save this website and check back. Also I post links to my new blog posts as well as my trades on Twitter, so be sure to follow me there too.

 

Here’s the video, let me know in the YouTube comments about your trading journey!

 

A Book I Highly Recommend for Day Trading Stocks

I cannot tell you how many great traders love what Mark Douglass teaches in Trading in the Zone. I bought the audio book on Amazon and absolutely loved it. That book has allowed me to finally realize that I'm being kind of silly for holding a trade when it's not working and since the week I have read it, I became a better day trader. You can say it's a How-to book for mastering the mind and the underlying reason traders lack consistency. Mark will help you overcome the mental habits that cost you money, plain and simple. I highly recommend it! 

 

 

I hope you cash in big this week, see you on the next post!