First, what is day trading? According to the definition of Wikipedia, day trading means that the practice of buying and selling financial instruments (such as shares, futures, options, etc.) in order to obtain profit during the same trading day. Participants called active traders trading day or day traders.
Trading day, like any other profession, requires in-depth training, proper planning and a lot of practice. Thousands of beginners will enter into trading day in the hope of making easy money.However, only a few of those who are well trained, have a solid business plan and discipline will prosper in this matter. many of these are making thousands of dollars per day trading only a few hours and spend the rest of the day free with family and friends, do what they like to do.
But how does one become a successful trader and make real money in this market? take a look at this article and you'll learn:
Step 1. We have to get a solid understanding of the financial market. We must learn what financial resources are available on the market as traders need the instrument that best suits them.Secondly, you must familiarize themselves with day trading strategies and try to find one that we like to better understand Search engines such as Yahoo ... and Google are good places to find good trading courses and strategies. Should conduct our research in depth and use our judgement to find what we want to do better. We also find the right trading tools such as market research tools, real-time trading software, and sign up with a discount broker who we trust.
Step 2. After you have chosen our commercial strategy, the next step is to write a draft negotiation.Yes, you must put our business plan on paper. draft trade, you should write us targets-what we want to achieve from day trading. What are your goals in the short and long term? We want to get a little extra income besides our work day, or want to become financially independent by trading day? Also you must write a detailed plan for its commercial activities every day, which includes in-depth studies, entry and exit our strategy and our representatives.
Step 3. Specifies a paper trading account. After our established commercial project, you should test the water with paper bargaining or negotiation simulation. This is very important, because we do not want to risk real money before you have a good understanding of the game. There are many trading simulators available free on the market, or to see if our stock broker provides a real-time simulation platform for trading. When we run simulation, we should strive to feel ourselves as using real money and act upon business plans.
Step 4; set a daily limit, both the profits and losses. as soon as we have built up confidence in the trading day, try to trade one or twice a week with real money. It is important to set a daily limit for holding gains and losses. For example, we can set a target profit of $ 200 per day, and the loss of $ 100. When we reached either limit, we should stop trading. Turn your computer off and go take a walk or have a cup of tea.Do not over trade.
Step 5. Have a money management system in place. Before entering each trade, you must analyze the worst that could happen. How can we afford to lose any trade if we happen to lose any trading have entered for the day? Knowing our maximum loss affordable for each trade is important, because we then would deliberately limit the size of our position on trade and set our stop-loss before we enter the trade.This prevents us from losing a lot of money and helps us stay in the game.
Step 6. fix problems our emotion, writing a transaction logs.For day traders, whilst retaining our emotions under control is a huge challenge and need lots of practice and disciple.Every day, we may be led astray by various emotions such as fear, pride, ego, etc.These feelings will prevent us from following our commercial project and finally to worsen our confidence.An effective way to solve this problem is to write magazines on a daily basis.When writing, we should analyze any part of trade and document the rationale or emotion behind trade. when we look at ourselves into the trap of feeling, you need to remind ourselves should not make the same mistake next time with practice, we can train our minds to follow our logic and keep your emotions we ourselves.
Step 7. ourselves rewards when we comply with our rules. When watching our strategic or business plan to the letter, regardless of winning or losing trade, we must give ourselves a big pat on the back, because we have conquered our feelings and made a great leap forward in the day trading success and economic freedom. once we have achieved our goals in the short term, we must not forget to reward our hard work and accomplishments. If it is a trip to Las Vegas or a cool iPad, place the reward to our business plan, which will motivate us to achieve our objectives. Finally, deserve anyway.
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