| Successful Day Trading is as much about what you | | | | any confusion re your market, your trades, your |
| don't do as what you do. Knowing the rules of the | | | | platform, your money management then stay out of |
| game before you play is the very least you should | | | | the game until you have clarity and understanding. |
| be doing. | | | | 5. Keep your trading under control. As a new trader, |
| 1. Be prepared to lose. Some say use only the | | | | ask yourself how many trades you can manage at |
| money you can afford to lose. I never have money I | | | | any one time. It doesn't matter if you are holding the |
| am prepared to lose. All of our money has come | | | | trades for a week but if you are trading a 5 minute |
| through hard work or clever work. Is any of this | | | | or 30 minute time frame then you need to be clear |
| really risk capital? If you are entering the market with | | | | about every single trade. |
| money you won or were given by family or from a | | | | 6. Always place a stop loss order. Never trade |
| credit card, then I suggest you will have an attitude | | | | without a stop loss. Place a stop loss on every trade. |
| to that money that will bite you in the market. | | | | Whenever you place a trade also place a stop loss. |
| 2. Understand your temperament, are you slow to | | | | Get It! Do you really get it! If not then don't trade! |
| change or fast to decide, are you anxious or calm by | | | | 7. Set your exit point for taking a profit, greed can |
| nature. Your basic temperament will guide you into | | | | turn a win into a loss. You won't believe how easy it |
| the correct time frame for trading. To day trade you | | | | is to see your profit target reached and then a little |
| need to be calm. A longer time frame may suit a | | | | voice says I can get more out of this trade, only to |
| more nervous disposition as long as you aren't | | | | see your profit rapidly evaporate. A trailing stop can |
| checking the market every few minutes and | | | | help here, as the trade advances your stop follows |
| stressing yourself. | | | | at a distance, not too close to be chopped out but |
| 3. Walk away from your trading for a while if you | | | | close enough to protect your initial profit target. |
| have a few loses. Don't trade from anger or a great | | | | 8. Love your losses! Am I crazy to suggest this? A |
| need to recoup your losses or you will add to those | | | | loss is a cost of doing business in the trading world. |
| losses so fast you won't know what happened. | | | | Accept it, live with it, get over it and your trading will |
| 4. Know what you are doing. If you are experiencing | | | | be far less stressful. |