Our best Day Trading tips
Many beginners start out in the world of day trading with dreams of making millions. Unfortunately, these dreams quickly fade away, as the harsh reality of losing money hand over fist starts to sink in.
In order to be a successful day trader, there are certain day trading tips that need to be taken on board before any real profits can be made.
Learn the basics
It’s so important to get the basics right first. So many beginner day traders are so eager to jump in with the big boys, that they end up drowning in the deep end. In other words, they try to run before they can walk.
If you are just starting out in the world of day trading, then it is highly advisable to invest in a good day trading book for beginners, that explains everything in a simple to understand style.
Get a mentor
Reading books is a great way to learn, but if you really want to take things to the next level, then finding yourself a day trading mentor can be extremely beneficial.
A good mentor with a proven track record, will have an immense collection of skills and knowledge, and can give you invaluable advice when you’re just finding your feet in the day trading world.
Long term thinking
Understanding that day trading is not a race is one of the best mindsets you can have. Too many traders are overly eager to get their next big score and in they end up going broke in the process.
A slow and steady strategy is much more favourable, and is the way that almost all millionaire day traders amass their fortunes. Remember, you are not competing with anyone, so just simply focus on running your own race and having a long term vision.
Becoming too emotional
Day trading can be tough on your emotions. One day everything works out perfectly, and the next day you can’t do anything right. It’s this rollercoaster ride that sends most traders running for the hills.
When your money is on the line it’s easy to get emotional, but you must realize that it is these emotions that will cloud your judgement. It’s much easier to make the right decisions when you have a clear head and are thinking straight.
At the end of the day, risk is a huge part of the day trading game. If you can’t handle risk then you will ultimately fail as a day trader.
You must learn to respect the element of risk involved in day trading, without letting the fear of risk overcome your thoughts which then leads to worry and anxiety. Look at risk clearly and objectively, but stay in control of your decision making process at all times.
One of the greatest traits of successful day traders is that they know when to cut their losses and walk away. Contrast this to a lot of beginners, who experience some losses and then start trading even harder to try and make up their losses.
Remember that you can always come back tomorrow, and the next day, and the day after that. Chasing losses is the one of the most common ways that people go broke.