Tips and Tricks
Day trading tips can come in various forms. Traders want different tips and advice according to their experience and time dedicated to trading. Here we will show several tips and tricks useful for all categories of traders.
The first step is to build a plan. Do not put real money on the line without having a real plan of action. To have a plan means to know what you are buying and selling, how much you will trade, and when you are going to take action. A trader without a plan is a pig heading for an expensive slaughter.
Besides having an investment plan, you need to develop a risk management strategy. This will make you feel safe, and you will be risking to lose only what you can afford. Without the trading plan and risk management strategy, your lifelong as a trader would be short.
With all the other traders out there, you need to take advantage of all the resources around you to stay one step ahead. With that being said, trading platforms offer a vast number of alternatives to analyze the market. You can also keep track of your historical data and activity. There are mobile apps, so you check your account on the go. Add here a fast internet connection, and you will find yourself making fast, informed, and well-thought decisions.
Successful traders never sleep. They are always looking to trade in a better way, which brings better results to them. It means the traders are always up to date with the latest news, utilizing trading books, and keeping up with schools of thought. Markets change, and you need to go along with them.
Be sure your strategy is based on facts. We, as humans, are emotional beings. If you close one day big, you might feel very enthusiastic the next morning, and you lose the point of the day. It would help if you started each day by not considering the results of the previous one.
You cannot find a perfect moment to enter the market or to exit. Just go after the entry and exit parameters in your plan. If you start experimenting, think twice. Maintain discipline, and your bottom line will thank you for it.
This may sound unfair, but it makes sense once you understand that the obsession over money can make you take back every tiny piece of money because you might be afraid of losing it instead of reinvesting it and multiplying it. So, focus on sticking to your strategy and let your strategy focus on making you money.
It happens very often that a trader loses his capital and blames the market or the broker. If you do not take responsibility, you will not learn what you did wrong, so you will not improve yourself. First, you need to point the finger at yourself in a polite way, trying to find out what went wrong, how can you stop it from happening again, recheck if you need any adjustment of your trading plan.
Keeping a record of previous trades is an invaluable tip. Software now enables you to quickly and easily store all your trade history, from entry and exit to price and volume. You can use the information to identify problems and amend your strategy, enabling you to make intelligent decisions in the future. You never meet a trader who regrets keeping a trading journal.
If you have the guts and the results that your current strategy is not working, do not keep throwing money at it. Look back to the drawing board and rethink your plan. If you can’t stick to your plan, don’t sit in the hot seat, you’ll only start on a slippery and dangerous slope, and there’s definitely no money at the end of it.