Success in any form of trading implies that you are betting your wits against anyone else in the market. Every penny you make is behind someone else's losses. This is also true for the day, the future and the forex.
The day trading is a full time job and you want to make a living on the day trading in stock or currency, you need to follow the following:
1. It is not realistic to make a profit from the first day on the stock or in the currency trade. You will make mistakes and you need to learn from your mistakes. Do not be depressed if you lose money during the initial period.
2. You need to be ready while the market is in trend. These are great opportunities to make big profits.
3. You need to work hard to limit your losses during the trading day. This is more important than making big profits.
4. You should always set yourself a limit on how much you are willing to lose in any particular trade and set your stop loss at that level.
5. You must have 100% confidence in your chosen trading method. Remember that success is nothing but a strong desire.
6. It's your success, so learn to take responsibility if things are not the way you want them to be. You must be disciplined, determined, persistent and, above all, take advantage of the trading day in your chosen market as currency, stock or commodity.
7. You need to do an intensive study and master all the tools like charts, Fibonacci sequence and technical analysis to become a consistent trader.
8. The best trading tips of the day are to manage your fear and greed.
The fear of loss and the fear of losing are two fears for all traders.
If you probably sell stocks out of fear, you will not be able to fully capitalize and recover from the trade.
Fear of forfeiting forces people to abandon their rules so that they do not get lost in another major movement of actions.
The best suggestion to mitigate these risks is to have an input and output criterion defined as part of your trading strategy.
Another side of fear is greed. Greed comes from overconfidence. Traders need to teach themselves about not focusing on losing their trading rules.
Source by Arindam Chattopadhyaya