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All articles by Larry Swing -
Day traders are a special breed of animals from the investors and
swing or position traders. To them, there is a routine throughout
the day they notice and take advantage of them. Each segment of the
trading hours has special meaning. When it comes trading, these
traders know when they are at their best and when they will not
make a dime.
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We have heard it: the market is not driven by money but by greed
and fear. The two biggest emotions that move markets up and down at
random; they seem to fluctuate without any logic behind them.
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We all have it and go through it one time or another and will
continue to go through it. For others, drawdowns are more common
than profit run-ups. Or worse, each drawdown is worse than the
last. It's a never-ending cycle where these holes appear in our
equity charts or account statement. How does a trader go about
understanding and coping with them?
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