How to Become a Day Trader
Constantly following the advice and rules of trading is the key to success in the market. Reread these rules before the beginning of each working day, like a mantra, until their implementation becomes a habit.
Create your plan
The benefits are disciplined. Disciplined trading is the most profitable. The more discipline, the greater the profit. Creating and following your own rules is the only key to success. Any trader will tell you how necessary it is to have good habits and traditions that help develop every day.
Write a detailed plan of your goals, and do not step back from your plan a single step. You must become a disciplined trader. Only through discipline in trading can you be successful in the long run.
Before you start working with real money, make sure that your methods work properly
To do this, you first need to understand what your goals are and how much time and money you are willing to invest in trade.
In any case, in order to understand which strategy is most suitable for you, first, you will need to try it in practice. This is best done by trading on a demo account. This way, you can protect yourself from losing real money.
Learn to avoid mistakes by creating daily tasks
One of the most important tips, especially for beginners, is to start small. No need to invest large sums. Even small investments can bring you good returns. Therefore, we recommend that you invest a small amount and increase your trade balance due to earned income. Also, adhere to the 2% rule – do not invest more than 2% of your capital in one transaction. So you reduce risks and learn how to get a stable income.
Beware of excess trade
Excessive trading, or over trading, is a danger. No wonder they say that everything is good in moderation. Traders who over-trade open thoughtless positions, wanting to get even more profit, but most often get completely opposite results.
In the trading plan, it is advised to determine how many transactions for a certain period of time (day, week, or month) you will open. As practice shows, it is better not to exceed this amount.
Always try to analyze transactions from previous weeks and months
If you take this advice seriously and develop the appropriate skill in yourself, you will be able to understand the reason for your past failures, draw conclusions, and will no longer repeat such a mistake. We consider this one of the most important Forex tips for beginners.
As in any business, you always need to try to develop. The constant discovery of something new will help well in this: new tools, methods, or programs.
Create a mental checklist for yourself and check with it in work
Experienced currency traders are always advised to draw up a plan. In it, you need to paint what you want to achieve in a certain period? In the pursuit of money, traders often forget why they came to trade at all. Never forget about previously outlined plans.
Excitement turns traders to the head, and they go off the previously chosen path, subsequently getting lost in the vastness of the foreign exchange market. Before you open a deal, you should carefully analyze everything that can affect it. So you can protect yourself from disappointment, well, and save your capital.
Create a plan in case you get tired
Do not open too many positions at the same time. If chaos reigns at your trading terminal, a huge number of windows are open, and you do not have time to keep track of all your transactions, it is unlikely that such trade will bring you profit, rather the opposite. In such a situation, you will quickly get tired due to excessive stress. Should not be doing that.
Restore your strength – breathe in fresh air or just change activities for a while to relax your brain a bit. Having returned to your workplace, you can engage in currency trading more judiciously and creatively. Determine for yourself the optimal number of simultaneously open transactions, and trade within this quantity. Like other daily Forex tips, this tip is also very important.
Use Stop Loss in your work
Among the trading tips, this advice is one of the most important and most popular. Whatever strategy you choose, always set Stop Loss. Sometimes they decide everything for a few seconds. So in order not to lose your capital during this time, use this “seat belt.” Stop Loss is a kind of safety net for a currency trader and allows you to reduce risks.
Do not risk more than 1% of your capital
Perhaps this advice seems silly to you. But take it seriously. Trade so that you are calm. Experiences only interfere with trading. If you doubt the decision made, do not put it into practice. Or you can dig a little deeper, find a few arguments to understand that this decision was right, and then it’s easy to implement it. Thus, you can safely trade while maintaining a sober mind.
The behavior of the foreign exchange market, by and large, is determined by the psychology of traders. The main part of traders just determines the trend. Therefore, to predict the Forex market, you must consider how traders can behave in a particular situation.
Use only current stop loss
In the foreign exchange market, no one can give you any guarantees. If some broker allows himself to guarantee you something, believe me, he is deceiving you. Read the tips and tricks carefully to find out what you can really expect from the foreign exchange market. All experts unanimously declare: no guarantees exist.
Make decisions based on your current market position
If you want to become a successful trader who regularly makes good profits, you need to be patient. Do not dream that you will become fabulously rich in just one night. Properly and consistently managing your money, you will learn how to get a steady income, minimizing trading risks. Only in this way can you overcome all crises, or even make money on them.
Potential risk should be worth every deal made
Some extreme traders go against the trend. They, as a rule, do not linger on the market for a long time. In fact, trends should be used, especially if you prefer long-term trading in the foreign exchange market. Trend trading allows you to understand what the market can bring you, and also helps to increase the income from trading currencies while reducing trading risks.
Integrate Stop Losses Every Day
Stop loss, as you might have guessed, is a “stop loss”. This order, which is triggered upon reaching a certain level of loss. It’s a protection against big losses. You also determine its size. SL is a market order, that is, as soon as the price reaches a level, it is triggered instantly, possibly at the worst price. Everything is exactly the opposite. If TP is placed higher during the purchase, then SL is below the entry price.
Use order limits to enter positions correctly
Each market has its charts and methods for their analysis. If you plan to trade in several markets, you need to learn to understand the information that these charts provide. These free trading tips will help you organize your time and organize your trading wisely. Learn and delve into until absolutely everything is clear. Only in this way can you make the most of all the opportunities that the schedule offers.
Work at the same time every day
Develop your trading strategy, and always follow it. If your consistently profitable strategy once failed, do not immediately abandon it.
Focus on One Market at a Time
Close profitable positions in parts. Close unprofitable transactions immediately and completely, but if the lot is larger than the minimum for a profitable transaction, first close only part of the transaction, as you reach the price of the target zone.
Real price changes are much more important than indicators
Do not get carried away with analysis. On the market you need to try and do, thinking about profit will not bring. In addition, there is always a risk of error. Play by the rules. Consistency is the key to market success. Do not be afraid of losses. Take for granted that sometimes you will lose money. In the market, this is inevitable.
Do not let one mistake turn into something more
95% of traders lose their trading deposit. This is a fact, and we are directly telling you about it. Moreover – there is not a single, very successful trader who has not lost several trading deposits. The forex market will temper every trader who wants to bite off his piece of the money pie. All the difference is that successful traders have extremely high obstinacy.
You should not see the reason for the defeat, but the opportunity for earning — the opportunity to become a financially independent person. Everyone has defeated, but this is an occasion to learn from them useful lessons and make their strategy better.
Explore currency pairs, their fundamental fundamentals
Fundamental and technical analysis – these are two types of analyses that control the entire Forex currency market. Fundamentalist traders prefer exclusively to follow the news of the economy. Technical analysis specialists use indicators, advisers, and graphical patterns on graphs of a currency quote exclusively.
We recommend that you use an integrated approach. It may not be so deep in every kind of analysis, but on the whole, it will give a more objective picture of the situation with a particular currency pair.
Realize your expectations, practice and teach trust in yourself
Follow your own judgment. We recommend that you focus on an annual return of about 25% if you are a beginner. This means that if you made $ 125 in a couple of days from $ 100, be prepared for the fact that by the end of the month, you will have $ 102 left. Moreover, it will be a success because you have not lost money! It may sound funny because you didn’t come to the market for the sake of $ 2, but believe me, this is a very important step for making big profits.
Everyday Tips – Conclusion
Learn to work in the direction of market movement, and you are guaranteed success. Learn to determine the trend. It only sounds very simple, but in reality, only a small percentage of novice traders can determine the price direction vector. Why? Because the trend is far from always the same on different timeframes.