Source: tradethemarkets.com
Day trading can be hard, all of the successful day traders we know blew out their account at least once before becoming consistently profitable online trading on an annual basis. (Or monthly, or weekly, depending on their goals and online trading style). These “bits” are not meant to make you a conservative or hesitant day trader.
On the contrary, day trading takes guts, and by following these “bits of wisdom” you are being given the key that will allow you to embrace risk and take the necessary chances required in the pursuit of capital gain. That is, you will feel more compelled to take a chance, because you know you are also going to fight to protect your capital. You won’t freeze and lie helpless as it is whittled away.
Day trading is the greatest business in the world. By following the bits of day trading wisdom below we hope that you can stay in this business as long as you choose.
Top 10 Day Trading Tips
1. Day trading is simple, but it ain’t easy. If you want to stay in this business, leave “hope” at the door and stick to your stops.
2. When you get into a day trade, start looking for signs right away that you are wrong. If you see them, then get out before your stop is hit.
3. Day trading should be boring, like factory work. If there is one guarantee in trading, it is that “thrill seekers” get their accounts ground into parking meter money.
4. Amateur day traders turn into professional online traders when they stop looking for the “next great technical indicator” and start controlling their risk on each trade.
5. You are trading other traders, not the actual stock. You have to be aware of the psychology and emotions behind online trading.
6. Be very aware of your own emotions. Irrational behavior is every day trader’s downfall. If you are yelling at your computer screen, imploring your stocks to move in your direction, you have to ask yourself, “Is this rational?” Ease in. Ease out. Keep your stops. No yelling.
7. Watch yourself if you get too excited - excitement increases risk because it clouds judgment.
8. Don’t overtrade - be patient and wait for 3-5 good trades.
9. If you come into day trading with the idea of making - big money,you are doomed. This mindset is responsible for most accounts being blown out.
10. Don’t focus on the money. Focus on executing day trades well. If you are getting in and out of day trades rationally, the money will take care of itself.
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