Tuesday, 17 March 2009

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. Lets 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 markt readings, not on your fear and your emotions.
Day Trading Strategy #5: Day Trading Courses
A very important day trading streategy 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.