8 Steps to Become a Master Day Trader
Success in any form of trading implies that you are betting your wits against every other person in the market. Every penny you make is on the back of someone else's losses. This is also true for day, future and forex trading.
Day trading is full time job and you want to make your living on day trading in stock or currency, you need to follow followings:
1. It is unrealistic to make profit from day one in stock or currency trading. You will make mistakes and you need to learn from your mistakes. Do not get depressed if you loose money during your initial period.
2. You need to be ready while market is trending. These are great opportunity to make big profits.
3. You need to work hard to limit your losses while day trading. This is more important than make big profits.
4. You should always set yourself a limit on how much you are prepared to lose on any particular trade, and set your stop loss at that level.
5. You should have 100% confidence on your chosen method of trading. Remember that success is nothing but strong desire.
6. It's your success so learn to hold yourself accountable if things do not go the way you want them to. You should be disciplined, determined, persistent, and most of all enjoy day trading in your chosen market like currency, stock or commodity.
7. You need to do intensive study and master all the tools like charting, Fibonacci sequence, and technical analysis to become a consistent trader.
8. Best day trading tips are to manage your fear and greed.
Let's discuss more on trading psychology
The fear of loss and the fear of missing out are two fears for all traders.
If you sell stocks out of fear probably, you will fail to capitalize and recover completely on the trade.
The fear of missing out forces people to abandon their rules so that they do not lose out on another major stock move.
The best suggestion to mitigate these risks is to have a defined entry and exit criteria as a part of your trading strategy.
Other side of fear is greed. Greed comes from overconfidence. Traders need to teach themselves on how not to loss focus from their trading rules.
Source: Arindam Chattopadhyaya