So you have been day trading for some time, take a few courses but still not turning a profit. Why is it that there is a high percentage of day traders that give up when they lose on a trade? I feel it is that that cannot stick to the basics of trading and follow the rules that are needed to turn a profit. Read below for a few things I think are important that need to be adhered to when starting out trading.
Never stop learning
It does not matter how long you have been dabbling around in forex trading, you always need to keep your skills razor sharp. You cant expect to learn to trade then not follow up your new skills with repeated education. These can include chart analysis, economic reports and financial records of the type of trading you are doing.
Don’t expect to become rich overnight
Forex trading over the last few years has boomed. There are a lot of forex millionaires popping up all over social media. Some these traders are giving the general public a false idea about trading. Some of these so-called millionaires are always selling a service whether it be a forex course or signal service. They want to “give back” to the public like they are some high all mighty forex gods. The real traders make profits and invest in bigger ventures or fund charities, they don’t have time to “give back” for a $49 a month signal service.
But wait why am I selling a program??? Cos I like food and a mans gotta eat right?! Yes, I do sell a mentorship program and an online course but my mentorship program is select as I travel a lot. My online course is intermediate and growing, but its there for beginners and new traders that want to learn in their own time, I cut out, what I think is bullshit and just add the nuts and balls of trading. Yes I am still learning and any trader that says they are not is a liar and I will continue to add valued content with no extra charge after the initial sign-up. I want people to grow with me and keep trading towards financial freedom.
Do not come into Forex Trading thinking that you can become a millionaire overnight. Be prepared to take a few losses while you are learning but for the love of money what-ever you do…. do not give up!
Select your Forex Pairs
If you’re a day trader that is just starting out, it is better to keep the number of stocks/forex pairs you trade to a maximum of 2-3 per day. As you will know to keep your eye on all the opportunities that are provided every day in the market is not easy. While you are starting out find 5 currency pairs that have the best sets ups for the week. Of these 5 choose 2-3 per day that you think will give you the best returns. This will give you the ability to spot new opportunities much easier and keep your wits about you when keeping an eye on the markets.
Don’t rush your trades
One thing you must try remember is that the markets will be there 24 hours a day, 5 days a week and there are many forex pairs and stocks you can choose from. Do not look for the trade let the trade come to you. When the market opens in the hours of the morning, prices tend to be volatile as many traders are ready to execute their trades right away. As a beginner trader, it is better to wait for at least 20 minutes before making a trade as, by this time, the market should begin to settle again. Towards the end of the day when traders are looking to close their positions, volatility usually kicks in again which can trigger some good trading reversals.
Keep your trading money aside
Never use money intended for bills and expenses for trading. As a new trader, you will have to be prepared to cut your losses, use money that you are prepared to lose as although we can make educated guesses with where price action is going to go, it at times doesn’t always go the way we want.
Stick to your game plan
Everything in trading needs to be planned “if you fail to plan you are planning to fail”. Be prepared, check the charts, check the economic calendar and follow your strategy. Your strategy should have a good money management plan along with it so that even if you lose 10 out of 15 trades you can still turn a profit.
If you follow the above-mentioned set of rules while developing a trading strategy, it is Soyer’s opinion that day trading will be much easier for rookies. Since new traders are still learning the tricks of the trade, it is better to play it safe before jumping into the deep and possibly drowning in trades you make without truly understanding what you are doing.