10 Day Trading Tips to Become a Better Trader

Warren Buffett once said, “The stock market is a device for transferring money from the impatient to the patient”. This applies to both – traders and investors alike. However, if you are an absolute beginner, there is always some room for improvement. We have listed below the 10 best day trading tips that successful traders follow. Learn them mindfully and take note to level up your trading. Moreover, you can also check out the best day trading tips and make money from online trading in Indian stock markets.

This is why rookie traders often look for advice from experts who have carved their names in the industry. Read on to find out what you may require before venturing in this high-risk but ultimately-rewarding industry.

1. Learn from a Professional Trader – Day Trading Tips

It is always better to learn to trade from an expert before you jump directly into the ocean. Try and find out who has a good teaching methodology and carefully choose the one that suits your style. Most of the trainers or masters will definitely charge a fee for the time spared. Don’t you worry! It is no fee. It is called investment.

After all, you are a trader and one day when you have made it big, you may be approached by newbies and you likewise charge them. But most importantly, if you invest into education, you are saving on market tuition from learning the lessons the hard way, on the expense of your account balance.

2. Pay Attention to the Financial News

Want to be the best trader around? Keep a close eye on the world around you especially business news. Stay updated about firms entangled in IP issues, Failed FDA nod, Board reshuffle, International projects, and dismal earnings estimates of the quarter.

Every news related to the firm you are making an investment in makes sense. Back your decision with these inputs. For a smarter decision while trading, keep abreast of every piece of information on your preferred investment firm.

3. Found Your Niche? Ace It!

Nobody can guarantee you a blockbuster return. You make your own choices and decisions and learn from your mistakes. Only you know which strategies or niches worked for you and which don’t. If you really have the zeal to excel in day trading, you need to be right on top of your business.

Once you have found the niche to work upon, become really good at that. Master it and it will enhance your odds of success in the trading manifold.

4. Treat it like a Business!

Have a hobby? Pursue it somewhere else. Making money and day trading is a serious business. You don’t do it for fun so even before you start to trade, you need to settle with the fact that it is a serious, time-consuming business and it will take time to break even. If you want to gamble, Las Vegas might have better odds.

5. Follow the Pros

Julius Caesar once said, “Experience is the teacher of all things”. Trading experts, despite their level of training, have a lot to boast, thanks to experience.

Follow the moves of the pros and find out what are they investing in? When do they buy? When do they sell? For how long do they hold? Try and understand how profit is made. You can learn a great deal from the mistakes they once made and then harness them to your advantage.

6. Have Patience

Rome was not built in a day. It takes time to master any skill and the same goes with stock trading. It can give you the best returns only if you trade wisely. Researchers have shown that those who trade less tend to earn better than the one who trades very frequently.

This is just like stalking your prey and then striking when you have absolute chances of success. Always remember that when you trade in average and not-so-good setups, you lose on good deals and eventually your profits take a hit. Therefore, one crucial day trading tips are that quality matters over quantity.

7. Don’t be Emotional & Follow Day Trading Tips

The world of trading calls that you keep a level mind and remember that if you let your emotions get the better of you while trading, you will most likely lose out on your money. Emotions make you take irrational, impulsive decisions which should never happen.

Frequent errors like letting your losses get out of proportion, adding to a losing position, not making timely withdrawals et cetera are made time and again. People fall into the emotional trap and make unconsidered decisions. And while you cannot help having them, learning to control your emotions will go a long way in positioning you as a shrewd trader. Work on the emotional quotient and you’ll make wiser decisions.

8. Sharing is Caring

Now that you have learned from your mistakes and other’s as well, it is time to share. You must share the experience you had while trading. You can start a blog, a YouTube channel or other medium for reaching out. Furthermore, you can have a comment section for answering the questions of your visitors.

This will not only help others but will certainly keep you disciplined. This habit will make you more accountable and you might think twice before making a trade you know, you should not be making.

9. When There Are No Good Plays, Don’t Trade!

What? Do not be shocked as this is no less a practical tip than the rest. Sometimes it is good that you don’t trade. Trading just for the mere fact is not a smart choice.

Trade only when you see money lying on the floor or the offer is too lucrative to let it go. Take your chances and remember that this is a highly dynamic world so weigh all possible benefits of making a move against sitting back and speculating.

10. Have Confidence

As obvious as it may sound, this is a key component of a refined trader. Whichever trading style you choose, you got to believe in yourself as failure to believe in the efforts you are putting or the decisions you are taking will never make you a winner. I might sound strange but people do not get good returns just because they cannot believe they will. This negative thinking results in negative returns.

Remember! Successful traders were also amateurs and novices when they started out. Their success has come from the hard work and efforts they have put in. Make mistakes and learn from them to continue trading until you start making profits.

As mentioned in the beginning, these day trading tips shared will let you learn some important hacks to improve Your game. Apply these diligently and you are sure to advance in your endeavors.

Good luck with your trading ventures! Don’t forget to like and share this post on your social networks.

Errors to Avoid in Forex Trading

Forex trading is the exchange of currencies from one hand to another in the currency market. Investment companies do this as well as banks but individuals can also play the currency trade through buying and selling. You buy at a lower price and then sell it or exchange it for a much higher rate of conversion.

Forex trading however can be a risky business to get into but once you get the hang of it, it an yield you a lot of gains. All you need to do is minimize your risks and errors in this volatile business and you are on your way to a bit of financial freedom.

Here are some of the mistakes that people make when they trade currencies. Read each one before you get into forex trading.

1. Never blindly trust people

No matter how good they supposedly are and no matter how great their credentials are in forex trading, there is still some room for mistakes. In fact, some people in the industry who have years of experience get too cocky and lose money in the process. If you are serious about going into forex trading, you must know the business yourself. You must also understand how the system works and be able to follow why a currency appreciates and depreciates. That way, you won’t just rely on the advice of people but also be able to make your own analysis and decisions.

2. Never rely on news

News may claim to be facts but often these are just one perspective or from one chunk of the bigger picture. If you want to really know about the business, do not rely on the news. Rely on your own analysis and then compare them to other peoples analysis in newspapers and television. That way, you will learn the business on your own. Besides, you should not believe everything you hear or read.

3. Buying low and then selling high

Although this is the theory for forex trading, this does not mean that you should wait for a currency to become really low, buy it and then wait again for it to recover and surge at higher rates. This is not the way to do it. Forex trading involves a much faster exchange of currencies. Buy low and then sell when it gains a point. You don’t have to wait for a peak to do it.

Forex Manual For Successful Trading – Just What You Need To Succeed In The Forex Business

There are entire library sections full of books that claim to offer a forex manual for successful trading. But truth be told, the only thing that’s really required is a little bit of first-hand exposure to the forex market. Of course, the books do help with clarifying basic concepts and giving new traders a sense of direction. So take a look at this basic information and guidelines.

Let’s start with the fact that the forex marketplace can’t be found located in the block around the corner, or around any corner. That’s because it is just a distributed global collection of large financial institutions who trade and set currency rates. Forex traders earn money by speculating on the relative values of specific currency pairs.

To be a forex trader, one has to open an account with a broker. This margin account usually needs a minimum opening deposit of $1000 or $2000. But unlike the stock market, forex traders have a massive leverage to play with. The amount available for trades on a new margin account with minimum deposit is usually one lot, which is $100,000.

These amounts may seem scary big for a new trader, but the risks are much lower than the stock market. Pick up any forex manual for successful trading, and it will say that all that’s required is to trade based on know-how and logic, instead of giving in to emotions. Even so, it’s better to keep the total amount of trades to less than 20% of the margin account. Individual trades should be no bigger than 5-10% of the account.

Even better to start off with a demo trading account and do paper trades instead of risking money for real. Choose a forex broker who offers a demo account. Use the account to clarify concepts like how to place a trade with the broker, how much of a spread the broker takes, and how many pips of gain that leaves for the trader.

This is also a good time to understand trading strategies, systems, signals and indicators, and forex derivatives and futures contracts. One very important thing which most forex training schools neglect is to teach traders to focus only on a few specific currency pairs. Good traders spend entire lifetimes tracking one or two currencies.

Given the complexities of currency variations and the large spreads charged by brokers for fringe currencies, it is better to focus on popular and stable pairs like USD/JPY, EUR/USD, USD/CHF and GBP/USD. This information can’t exactly be labeled as a full forex manual for successful trading. However, it is enough to get started in the right direction.

Forex Trading Profits – A Manual Trading Strategy That Works

It is possible to take up Forex as a full time profession. In fact, it is the only home-based business anyone can set up from home with as little as 1500 USD. You will need USD 500 to set yourself up with a laptop and internet connection and 1000 USD to deposit in your forex personal ECN account. In 20 days you will be making more than USD 200 per day with this strategy, but it takes time and patience.

Good charting software that comes with the popular MT4 trading platform that almost every broker offers free along with a trading account is the only tool one needs. Added to this is the knowledge of trading strategies and risk management and one is all set to set up the perfect home based business without any overheads at all.

It is possible to make as much, or as little (whichever way you look at it), as 200 USD per day trading forex with a 1000 USD account.

I’ll let you in on a little secret forex trading strategy of mine:

Trade a 0.5 percent of your deposit in PIP value. This means that one pip should be equal to 0.5 percent of your deposit. So if your deposit is USD 1000, your exposure per pip should be USD 5.

This will leave you with 160 pips to play around with. The chances of the market moving 100 pips in the wrong direction are scarce if you have an eye on the screen while the trade is open.

A good strategy will give you ample warning that the market is going to move further and you can opt out. I suggest you keep a stop loss of 120 pips, believe me you will never need it if you follow this strategy.

Observe a monthly chart. Mark out the highest point and the lowest point the pair reached over a period of 3 months. Observe the most common price the currency pair kept returning to and draw a line through that point. That is your entry point. Go long with 0.2 lots at that point and go short at the same point with 0.2 lots. Your per-pip value will be USD 2 in each trade.

With 160 pips to play around with you don’t have to worry about the margin call. The market will move in both direction and return to the same entry point at some time or the other. You must set up alerts on the MT4 for 10 pips above and 12 pips below the entry price. When the alert sounds, exit the trade.

If the market moves away in either direction you will still make a profitable trade. It will be a matter of time before the market returns to the entry point.

With a 0.2 lot trade and take profit point at 10 pips, you stand to gain 20 USD per trade. You will get at least 4 opportunities to trade in a day. That will make you USD 80 per day. With a consistent trading strategy you will make 1600 USD in 20 days. Use it to increase your per-pip value.

This is one strategy that has worked for me over the last 2 years. Why, should it not work for you? The only thing that could be a problem here is that you need patience and have to be in front of your terminal every day. It will also pay if you increase your deposit and reduce your trade percentage. The lower the better because then you will have more pips to play around with if the market moves against the trade. Remember, the market will return to the entry point, you just have to wait it out without fearing a margin call.

How to Be a Masterful Trader Part 4 – A Trading Plan

Why Have a Trading Plan?

First thing is that we have a Trading Plan so that it keeps us on the right path like a road map and if we don’t have a road map how do we know where to go.

Secondly, having an up to date Trading Business Plan and consistently using it gives us the opportunity to keep a record of our trading results so that we can go back over our trades and identify our weaknesses and strengths so that we can learn from the past.

Thirdly trading is a business, not a hobby (remember that a hobby costs money, a business makes money).

Every successful business has a business plan and a trader’s business plan is his/her Trading Plan and the more diligent you are with your Trading Plan the higher the probability you have of being successful.

What Should Your Trading Plan Include?

First, you really want to have written in your own words a description of your Entry Points, how you manage your trade and how you will exit your trade.

Now this will change as you progress through the different stages of being a Professional Trader (from Paper Trader to Demo Trader to Live Trader).

Included in our Forex education programs are sample Trading Plans that cover all of the major aspects of each of these distinct and vital stages.

Your Plan should cover different aspects including your routine, your mind set, addressing your weaknesses and building on your strengths, your goals for the day, week, month and year.

It is important to include goals in your Plan – this is the area where you want to go into as much detail as possible – it is the area that will motivate you to achieve your goals.

The goals section is where you will go first when you are having a tough time keeping on track.

Your Trading Journal (when you plan to trade – including the session) should also be covered in your Trading Plan, as well as the time you devote to journaling your trades and the time that you review past trades to look for areas of development.

Your Trading Plan is a Living Document

You should go over your Plan at the beginning of every trading session as it will enforce what your trading style is, and at least you should up date your Trading Plan each week.

One of my friends who happens to be a trader said this to me once (well more than once) “you can have all the trading tools in the world but if you don’t have a plan on how you will use them, then you will have a hard time trying to be successful with them”

Trading Plans – Your Trading Business Plan for Success

The reason I am passionate about trading plans is that I did an overhaul of my trading plan recently and found that once I had finished going through it and updating it I traded with more confidence and freedom than I have since April 2003.

The other reason; which is more important to me, is that the all of the traders I have worked with have experienced astounding trading results after clearly writing their Plans and using them to keep them on track.

I also recommend having a Plan for each phase of your Trading Business – Paper Trading, Demo Trading and Live Trading. Each phase of your Business is distinct and you should have structures, goals and measures for each phase.

These are the plans that I use when I trade and the ones that I recommend that all of my clients use also.

Factors Affecting Forex Trading

Forex Currency Trading is affected by several factors which are mostly external to an individual. Most important of these are GDP, trade reports, unemployment and interest reports.

One beauty of FX trading is that there is no lag in the dissemination of information across the globe. It is released simultaneously and becomes available to everyone equally online or offline.

This is unlike online stock trading where one remains ignorant for a considerable period of time about the news affecting the volatility of a stock.

Most of the times in the stock market, an investor is in the dark regarding the causes of movement in a particular stock. Investors come to know about the causes like insider trading, law suits, revision in earnings etc. much after the market has reacted and absorbed the news.

Only few people have the right information at the right time in stock trading. As a result, most of the investors are at the receiving end in this market.

This is not the case in currency trading. Here all the information that affects a particular currency becomes known to everyone instantaneously in the whole world. There is hardly any role for insider trading or behind the scene news in a forex market. So information is more open.

Almost every online forex trading platform maintains a global economic calendar. This calendar indicates the major forthcoming economic, financial and business related events all over the world and which can have important bearing on foreign exchange market.

All one has to do is to keep a tab on these important events and their positive affects. If one can analyze them properly, it is possible to benefit considerably overtime.

Aforesaid factors which are having a major bearing on currency exchange are fundamental in nature. Coupled with technical analysis, these are of substantial aid to any forex exchange player.

Of course it is not easy to watch or keep a tab on all the factors that affect foreign exchange trading sentiment. They change in importance over time and condition. But the information is available to anyone and for use to one’s benefit. One can react immediately to any new information.

In stock markets, one is always faced with trading hours restrictions, closing and opening bells and unknown information. Forex markets are credited with 24 hours availability, open information and ease of use. One is not faced with restricted trading hours and one can trade from a few minutes to long hours.

In North America or Western Europe, people know a lot about stocks and bonds. But the rest of the world deals in currency. As there is more of globalization, online currency trading will get a further boost.

Most important GDP figures that affect forex trading are those of USA, Japan, Canada, Australia and Britain. China is also expected to be a major force in online paper trading in not that distant future.

One can do forex currency trading from anywhere in the world. All one needs is a computer and a forex trading platform. As soon as one gets some important economic or financial news, one can react accordingly in real time.

For more information and for a Free Forex Report, please follow the following link:


Exit mobile version