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. We will show here 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 are going to trade and when you are going to take action. A trader without a plan is a pig heading for an expensive slaughter.
As you should have a plan on how you will invest your money, you need to develop a risk management strategy. This will make you feel safe, so you will be risky to lose only what you can afford. Without the trading plan and risk management strategy your lifelong as a trader would be short.
The successful trader never sleeps. He is always looking to trade in a better way, which brings better results to him. This means the trader is always up to date with the latest of the 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, we 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. You should start each day by not taking in 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 not fair, but it makes sense, once you understand that the obsession over money can make you take back every tiny piece of money cos 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 blame 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 to yourself, in a polite way, trying to find out what went wrong, how can you stop it to happen 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 a dangerous slope, and there’s definitely no money at the end of it.