Tuesday, 17 March 2009

Day Trading Tips for Successful Day Trading Online

These day trading tips are here to help you to stay on track while day trading online.

Have a day trading plan and TRADE IT. Know your positions, entries, targets, and stops before you enter a day trade online. Take emotion out of the equation.
Follow the Trend. The trend is your friend, don't betray it. If your friend is running up the hill follow it long, if they are racing down the other side go short.
Save your money. Trade the right amount of money for your portfolio size. This isn't Vegas, don't try to double your money on one big day trade and end up losing it all.

If you're losing money be smart, LET IT GO. Don't chase a bad day trade thinking it will come back; you will probably end up losing more than you intended. (See Rule 1, have a plan.)
Know your limit, don't be greedy. Figure out how much you are willing to take before getting in a trade. Take your profit when it is good.
Don't be a cry baby. Leave emotions at the door. Don't day trade to make a certain amount of money (greed), and don't day trade scared to lose money (fear).
Don't follow the hype. Do your homework. Don't try to follow someone else's footnotes. What works for one person may not work for you.
Dear Diary. Write your trades down. Keep a log. Figure out why took a trade, was it emotion, or reason. This will help you for future trades. Focus on what you did right and avoid the same mistakes.
If you're not sure, do NOTHING! If you have doubts sit out. You'll save more money this way.
Don't day trade just to day trade. Over trading will cause you to be scattered and emotional when day trading online. You tend to make bad decisions when you have too many open positions. If it means getting out of the office, do it. Go play with your kids, walk the dog, go to Starbucks, but don't put on a position out of boredom.
YOU decide what day trades to place and when to stay out, keep these day trading online rules in mind next time you pull the trigger. Remember follow these few simple rules and you will be well on your way to successful day trading online.