Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

5 Golden Rules to Be a Successful Day Trader

The day trading is not all that complicated once you learn a simple, rules-based strategy for anticipating market moves. Learn 5 secrets to succeed in day trading:

  • Find out scenarios where supply and demand are drastically imbalanced, and use these as your entry points.

When supply is near exhaustion and there are still willing buyers, price is about to go higher. When there is excess supply and no willing buyers, price will go down. In all the Advisory Firms, students are taught to identify these turning points on a price chart and you can do the same by studying historical examples.

  • You must set price targets before you jump in.

When you are buying a long position, decide in advance how much profit is acceptable as well as a stop-loss level if the trade turns against you. Stick by your decisions. You will limit your potential loss and keep you away from being overly greedy if price spikes to an untenable level.

  • You must insist on a risk-reward ratio of at least 3:1 when setting your targets.

This is the most important lessons in stock trading for beginners that they must understand a proper risk-reward ratio. This allows you to “lose small and win big” and come out ahead even if you have losses on many of your trades. Actually, once you gain some experience, risk-reward ratios of as high as 5:1 or even higher may be attainable.

  • Try to be a patient trader.

A successful day traders often do not trade every day. You may be in the market, at their computer, but if they don’t see any opportunities that meet their criteria they will not execute a trade that day. That is a lot better than going against your own best judgment out of an impatient desire to “just do something.” Plan your trades, then trade your plan.

  • Try to be a disciplined trader.

You need to set a trading plan and stick to it. Always remember, before trusting the advisory firms that students execute live stock trades in the market under the guidance of a senior instructor until right decisions become second nature. When you are trading on your own, impulsive behavior can be your worst enemy. Fear can cause you to bail out too soon and greed can keep you in a position for too long. Do not expect to get rich on a single trade.



This post first appeared on Share Market News In Hindi, please read the originial post: here

Share the post

5 Golden Rules to Be a Successful Day Trader

×

Subscribe to Share Market News In Hindi

Get updates delivered right to your inbox!

Thank you for your subscription

×