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How to Be a Successful Day Trader
- Here's how to become a successful day trader:
- Learn candlestick patterns.
- Find reversals within the patterns.
- Stock volume is key. Master it.
- Have a good stock scanner.
- Learn support and resistance.
- Choose a broker with fast executions.
- Control your emotions.
- Manage your risk.
Day trading, whether in the stock market or the Forex market, is not easy. Usually, the biggest problems day traders face is their own emotions like greed and failure to accept a loss.
That said, if one would study how to be a successful day trader, he or she would see that there are three aspects to it. So for today, let's explore these aspects so you can be successful as a trader.
The stock market is an interesting phenomenon. It lures people in with its promise of success and wealth.
But do you know how to be a successful day trader? Without that, you won't get very far. In fact, did you know that 90% of traders fail and give up?
Don't let that scare you, however. All you need is steps on how to be a successful day trader. And then you need to implement and stick with them. Trading isn't easy.
If anyone says it is, they're lying. That might sound crazy coming from a trading service. However, we're honest with our community because we want you all to succeed.
Day trading is a skill that lasts a life time. All you have to do is learn how to be a successful day trader by taking our day trading course.
1. Get Your Emotions Under Control
In my honest opinion, one of the biggest problems of traders face is controlling their emotions. So the first tip in learning how to be a successful day trader is to first learn how to control emotions (watch us do trading live each day in our trading rooms).
Especially because emotions may cloud judgment. Now, the two most prominent emotions that would show up in trading would either be greed or fear.
Firstly, greed would come out when one has already earned substantial profit but wants more than what his or her trading plan would command.
So the tip to controlling greed would be to simply stick to the trading plan. If the trading plan states that one should just profit until this price level, stick to that because greed can cloud even the most logical person.
The next emotion that one has to watch out for would be fear, specifically the fear of losing money. There are times when one is already in a completely losing trade as per his or her trading plan.
However, his or her fear of loss is clouding his or her judgment and prompting the trade to go on even if it is already a losing trade. The answer to this would be to have a stop loss and stick to it.
2. Find Your Competitive Edge
Once emotions have been controlled, the next aspect in leaning how to be a successful day trader would be the skills or the competitive edge.
In trading, there is no such thing as not having losses. There'll definitely be times when the market makes an unexpected move.
The trick here is to simply make sure that all of the wins are simply more than the losses. This is why one would need to have some sort of edge in his or her belt.
It helps to increase the chances of having winning trades. In this turn, one would have to learn the skills of trading such as technical analysis and fundamental analysis.
Fundamental analysis would be reading the news. Then deciding which pair or stock to buy based on the current news movement or sentiment of the market. Fundamental analysis will allow one to know which stock or Forex pair he or she should buy or sell at the moment.
The next type of analysis would be technical analysis. Which is the type of analysis that will determine what price level one will enter and what price level one will exit.
Indicators are usually used for one to analyze the market but the most effective strategy in the technical analysis would be price action trading.
Price action trading allows one to use the movement of price as his or her guide, allowing him or her to know when the best time to enter the trade is.
3. Minding Your Mind: How to Be a Successful Day Trader
The last aspect of trading would simply be the mindset. Now, when most people enter trading, they're immediately results-oriented. Put simply, they only see the money behind the activity. Make sure to keep an eye on volume.
When they only look at the possible profits, they will immediately become clouded as to how the process should go and how to increase skills.
Unlike gambling, trading is actually an art that needs to be perfected over time. This is because there are a lot of aspects in this activity that are rather subjective than objective.
With that in mind, it is actually more important for one to have a process-oriented mindset when it comes to trading. Instead of thinking about money, one should have a passion for continuous improvement when it comes to trading.
In my opinion, one needs to think only about how to improve skills and learn from their mistakes. Once one has improved his or her skills, the money will eventually follow anyway (read about the many types of stocks).
4. Art Form: How to Be a Successful Day Trader
One may actually liken trading to painting or even any other art form. One does not think about the monetary aspect when he or she does his painting or sculpture.
All he or she would think about would be getting a fine piece of work out and improving his or her skills along the way.
Trading is the same in a sense that market analysis is actually an art. The final output would be a wonderful analysis that has been painted with bountiful colors from various indicators and price action tools on a chart.
If one knows how to beautifully analyze the market, then the money will eventually come. Just like if an artist beautifully creates a masterful piece of art.
That said, it is very important that one has a mindset that is process oriented with a persistent attitude. Along the way, there will be wins and losses.
When one practices his or her skills, expect there to be blunders but learning from blunders are all going to be part of the whole learning process anyway.
As long as one knows that he or she can never give up if he or she wants to perfect this art, then he or she will definitely go far in the art of trading. Take our basic trading course.
Final Thoughts: How to Be a Successful Day Trader
These three aspects encompass the success of traders everywhere around the world. Now, one has probably seen a lot of success stories from traders all over the internet wherein they claim they make profits in a month that are higher than even the salary of highly paid executives.
Assuming that these stories do not come from scammers, most would not talk about the struggle they had to go through in order to reach that level. There are a lot of painful losses, sleepless nights, hardcore studying, and existential crises that one will most likely undergo before he or she becomes a profitable trader.
However, it is definitely worth it in the end. If you want to learn how to overcome trading hurdles and be successful, join us today.