Day Trading Strategy

Day Traders are bombarded with all kinds of day trading strategies and tips about stocks, options and futures online trading. It is hard to decipher which ones are to be followed and which ones should be discarded. Day trading online is a difficult profession and every day there are hundreds of newbie traders who succumb to the pressures of the market. They lose money and never return again. Let’s take a look at some pivotal day trading strategies that can prevent this from happening to you.

Day Trading Strategy 1: Day Trading Plan

Make sure you develop a detailed day trading plan. That will result in the profits in the long run and will help you stay in the trading game. Take a look at writing a trading plan for specific rules on how to create a trading plan. We also offer a day trading mentor program to help you devise and practice following a trading plan.

Day Trading Strategy 2: Minimize Your Risk

You are not Indiana Jones and the risky traders do not go home with the gold. The best day trading strategy while day trading online is to protect your capital and let that capital base grow. If you are a newbie trader, then do not trade contract sizes that make you sweat? Start off with a size that you are comfortable with and build up from there.

Day Trading Strategy 3: Day Traders Lose Once in a While

The markets go up, they do down. Day traders make money, day traders lose money. The trick is to not let your ego get the best of you. Don't hold on to a losing trade just because your ego won't let it go. Use the day trading indicators and make your decision based on market analysis.

Day Trading Strategy 4: Day Traders Win Once in a While

It's funny that day traders are just as afraid to win as they are to lose. If a trade is going your way, don't be afraid that it will reverse any second and jump out of the day trade. Instead, follow your indicators and your trading plan. Make sure you have a target set and make your decision based on your market readings, not on your fear and your emotions.

Day Trading Strategy 5: Day Trading Courses

A very important day trading strategy is doing your homework and learning all you can about how the markets work. Try to learn at least one new day trading online concept every day. Attend 1 day trading seminar every few months. The more you expand your horizons, learn from others and see what else is out there, the better you will be able to understand your own trading and identify your own trading style. Get comfortable with your profession and you will be comfortable trading.

Day Trading Strategy 6: Be Prepared for the Trading Day

This day trading strategy does not really have to do with day trading online. It has to do with your mental state. Make sure you are able to focus on your day trading online. That means being well rested, getting a good night's sleep and not being preoccupied with other things. Try to clear your mind with a few weeks off and take up physical activities you enjoy. If you are psychologically ready to handle the markets, your decisions will be much better than if you were tensed, tired and in poor state mentally.

Day Trading Strategy 7: Don't Try To Become a Overnight Millionaire

A very good day trader realizes that day trading online is not like winning the lottery. Your day trading strategy should not be to hit the pot of gold and be a instant winner. Instead, a day trader who is professionally day trading online should build profits gradually. Day trading online is a profession, a great profession, but it takes time, effort and patience. 

Are You a Newbie Trader?

Day trading online is not an easy profession. You might be stuck in one of the common pitfalls that often devour newbie day traders. Find out if you are still a newbie trader.

8. The Gut Trading Indicator: When you are day trading, you use your gut feeling instead of calmly assessing trading market conditions using technical indicators and trading software and selecting high probability day trades.

7. The Gold Rush: You think day trading means that you can make a lot of money in a short amount time.

6. Day Trading the News:You are glued to CNBC for your next day trading stock tip. CNBC has a very specific job: To provide enough entertainment to viewers so they tune in and watch. With a lot of people watching, they make more money from the commercials. It's as simple as that. CNBC is fun to watch, and when things get serious; they do a great job reporting. You cannot make a living "trading the news" off of any financial news channel. By the time it appears on television, it is way too late to react. Trading floors have already heard the news and by the time it makes it to the public they are closing their positions, ideally to suckers who just saw the headlines, the news does not provide day trading tips.

5. Trading Market Chaser: You continue to chase the trading market. If a certain trading price is going up and the puts are in a long position. Suddenly the trading price pulls back, you start to get nervous and get out of the day trade with a 20 pip loss. All of a sudden, the trading price resumes it seems like an uptrend. You think, "Wait a minute this is easy, I was right all along." You add in a second long position to try and make up for the 20 pip loss. You are hoping to make a profit. Well, guess what, the price doesn't up, it pulls back, and ends at a 25 pip loss. Your day trading P&L for the day: -45 pips.

4. Day Trading Slacker: You do not do you homework before the next day trading session begins. You do not examine the charts from all time frames; you do not understand the direction of the overall market trend. You have no idea if employment numbers are about to be released or any other announcements so that you may prepare to handle the trading market correctly.

3. The Player: You have indicator commitment issues. You jump from one trading indicator to another. Sure you know little about them all, but you don't know a lot about any specific indicator. Therefore you have no idea which indicator fits your personality and day trading style the best.

2. Day Trading Overachiever: You day trade way too much. You trade multiple lots and you think that it will result in a big pay off at the end of the day.

1. Day Trading Cowboy: You continue to think that you can learn by day trading by yourself, you will find the secret code, crack this system, become a billionaire and fly away to Tahiti. Trading is a profession. Most successful traders learn from a day trading mentor, someone who is already a professional and a successful day trader, usually with years of experience. If I wanted to be a doctor, I couldn't just watch an operation on TV and expect to succeed when I tried my next angioplasty. Why should trading be any different from any other profession?