Intraday Trading: Beginners Guide to Day Trading

Many traders who have made a career from day trading the Stock Markets will advise you that it may have not been quite as simple and straightforward as they originally expected. The draw of quick profits makes day trading a very attractive proposition. Many traders embark on their new career with the highest of expectations and dreams of a secure financial future. As their path progresses many find difficulty in achieving sustained profitability and realize that there are many barriers to achieving consistency. Emotional roller coasters become prevalent and may swing between euphoria and despair as many traders are left bewildered and confused.

Day Trading is not about just having a great strategy – but lot of other elements required to be successful.

Understand your Market you want to trade

Each and every market has characteristics unique to itself and understanding and observing  market you want to trade will build confidence in trading that instrument. Few things every trader should observe are

  •  highest volume times during the day
  • Respect shown to certain levels in the market

All markets hold unique characteristics and will react differently under differing circumstances. Being in tune with a market will assist a trader to trade more easily and react better to the parameters of any given strategy. The confidence gained will ease the pressure of decision making and allow a trader to react more readily.

Trade One Method

One of the Biggest concern I heard during my trading session most of traders find difficulty in applying and sticking to a Single Trading Methodology. An extended run of losses will often cause a trader to start doubting their method and start searching for others. One of the very few circumstances that this scenario would be plausible is when the strategy has exceeded the expectations of back tested performance.

What successful traders understand is that to remain consistently profitable, they only have to perform one task and perform it consistently well. “Consistency is the Key”. The desire by many traders to be continually active in the markets is often more harmful than it is profitable – as they may be seeking further trading opportunities that may not be as consistently profitable as others. Always believe in Golden Rule- “Trade Less Trade Better”

Patience is Virtue for Trader

Many traders believe that participating in the Stock markets is exciting, dramatic and a fully fueled Adrenalin rush. Whilst in some instances this can be true like we have seen in March month , quite often a trader may find that there are long periods with nothing to do. It is in these periods that a trader needs to remain patient and await their trade entries and then execute them flawlessly.

Trader’s often fall into the trap of trading for the sake of it and throw away from their Trading Plan.  The discipline of a trader to trade their plan in accordance with their strategy is the key to positive trading results.

Successful traders are like a “TIGER” wait patiently for its prey to come and grab it . In essence Successful traders await the conditions that are specific to their trade entry. They understand that the markets will present them with opportunities day after day and see no reason to force an entry into the market with a lesser probability of success.

Embrace Losses

Losing Trades are an inherent part of trading and every trader will incur trades that did not meet their expectations. There is no Holy Grail of trading that can create winning trades every time and so as traders we need to learn to accept these losses as a cost of doing business. Accepting Losses is an Art a trader needs to develop. No one would like to take loss but in market booking losses will only help you to survive. Based on our research we have found 65% retail traders are profitable on 80% of trades but the 20% loss making trades are so big that they end up being in loss  Having this knowledge allows a trader to expect that losses will come along and accept them as part of their overall performance.

Day Trading can be a very rewarding career but success chances are just 5%, so requires lot of hard work and discipline. Rewards are equally exciting and can lead to your financial freedom.  We have the methodology to help traders succeed. We teach our proven and consistent strategy but we also equip our students with ‘all’ the tools they need for a bright and clear future trading the stock markets.

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