Do you know that day trading is the art or style of the trader? In day trading many traders buy or sell financial instruments on the same day for earning their livelihood. Day trading can be risky for the day trader. Because If the day trader does not have full information about the market. Then maybe traders can lose money in the market.
Today in this post I’m going to tell you how the trader can become a full-time trader in the market by using some method. Day trading is risky because in you have some time to take action. As well as you know in some time we can do anything. But if you spend a long time in the market then you can catch too many moves in the market.
How it is possible? The answer is you can do anything if you have a grip on the chart. In this article, we going to read many things are related to new traders.
Table of Contents
Cut your all losses In the day trading
If you want to become a day trader then you should cut your loss in day trading. If you are suffering too much loss in the day trading then your account will wipe out soon.
We know as well that cutting the loss can be difficult for every trader it’s a long process for every trader. In other words, cutting the loss means coming out of the trade when you reach your daily risk-bearing parameter.
In other words, we can say it is a principle of risk management. And it is very essential for a trader who is looking to maximize their profit and minimize their loss. Day trading involves the buying or selling of assets on the same day. We have a goal to book our profit or loss with the short-term price movement.
As well as we know the market is unpredictable and volatile. It is not uncommon for the market can move against your side. At that time we use stop loss to stop our loss in the market. The point is to know how to cut our loss in the market. By honest I want to tell you please do it. Because the market does not give you change again.
Control your emotions while trading
It is an important part of life. Controlling our emotions while trading is a challenge for every trader. But the question is arising how do control emotions while trading? Many traders give their theory of how they can control their emotions.
In the area of trading, emotion can form fear, greed, and overconfidence. It led to significant losses. If I talk about fear it forces you to sell your investment too fast while the market is moving too fast downside. Greed may go lead to taking huge risks in the hope of making a big profit in the signal trade.
Now the point comes to how to control our emotions while trading. According to my opinion while day trading it’s very important to understand your emotional triggers and how they are approaching your decision-making process.
Once you are aware of this process maybe you succeed in controlling your emotions. Beuse you have information where you are making the mistake and you have a strategy to control your emotion.
If you have time to control your emotions you must trade with some quantities in your intestinal trading days.
Find your strategy for day trading
This is the main part of day trading. Because without strategy we can’t survive in the market for a long time. As well as we know trading strategy can be any form and any kind of candle.
Instant, Focusing on the various strategies you must make your strategy in the market for a long time. Like you perfect on the hammer candlestick and you are taking the trade on it every time. Then it’s your strategy.
The strategy helps to minimize your risk tolerance. Because you have done a lot of trade on your trading strategy. I have my trading strategy in the market for day trading. But it’s quite risky for you because you don’t know what are the parameters of my strategy in the market.
Now how we can make the trading strategy? It’s a very simple answer do trade every day on various setups and find out which setup is more important to you in the market. Then make it your strategy. You don’t have to follow a bunch of the indicators in the market.
Practice with a paper trade account
Practice makes a man perfect. In the same way, you can practice with the paper trade account. We can observe our trading history without losing any capital in the market.
The practice is known as a demo account. And by using the demo account you can test your trading strategies in the market. You can improve your trading style in the market in some time without losing any kind of capital.
One more thing to remember is the paper trading account can help you improve your confidence and your experience. But there is an exemption it can not replace your emotions or your psychology level. It will come from your real trading and your experience.
Set your risk/reward ratio
The risk-reward ratio shows your risk in a trade. Mean you are ready to sacrifice some percentage of capital in the market to get a return from the market. You must have a positive risk-reward ratio because it helps you manage your risk in the market for your profitability.
now the point is how to manage or set the risk-reward ratio in the market. There are too many ways to manage
our risk and reward in the market.
- Determine your entry or exit point in the market: You must know what is your entry point and where you will be taken off trader from the market. This is a nursery part of trading for every trader.
- Calculate your potential profit and loss: How much you can lose and what is your target for getting into the market? You must calculate before jumping into the market. Set your all things before placing the trade in the market.
- Adjust your position size: This is the nursery part of trading life. If you are not sure about your trading plan or trend then you can adjust your position size. It is the most useful part of the trading
While setting up the risk-reward ratio you must be aware your risk reward is managing your risk. You must practice every day in the market for more improvement meanwhile you can take risks you can afford to lose in a happy mood.
Don’t follow others, follow their education system
In trading, you don’t follow others. One thing to know you can learn from them. But you don’t follow them in your trading career. If you want to take any kind of tip related to your trading carrier then you can.
Follow mean you can follow other for learning purpose. If you follow others blindly without questioning or thinking then be careful because you are preventing yourself self discovering your unique path.
It’s very important to trust your own company and take the decisions and actions on your own. This doesn’t mean you should seek advice from others.
One thing to always keep in mind everyone has their own journey in the market. They have their mindset, strategy, and their method of trading. So you can follow all of them for your learning purpose not for earning purpose. If you succeed in doing this you will be able to do day trading in some time
Track your Trades and keep their records
Day trading involves a bunch of things in the market. Like, do complete trading in the day. If you want to track your day trading you can follow something in the market. It will help you in the market.
Keep your trading journal in the market. It helps to track your trade. How many traders did you take during market hours? And how many traders go in your fave or how many trades in go your favor? All of the things you can track by your trading journal.
Monitor the market conditions to become a successful trader you must keep eye on the market sentiments. What is happening inside the market? By keeping your eyes on the market you can trace your trades.
This is a good habit of the trader. Because once the trader starts tracking his trade. Then traders will be bound to the mistakes and start rectifying their mistakes in the market. By tracking the trades you can become a successful trader in some time.