How to Become a Successful Day Trader
In order to become a successful day trader, it requires many skills, discipline and experience and knowledge and patience So there are few steps that can help you in order to become a successful trader.
- Make your foundation strong: if you are starting the training before that, you should have a good understanding of the Trading & financial market trading instrument trading strategies. You can read few books, attend trading courses and webinar and follow repeatable financial websites, without learning anything about the market then it will be impossible for you to make profit and become a successful trader.
- Know your strategy properly: 3 types of risk reward strategy according to the winning ratio in order to be a profitable trader
- 1:1 risk reward then 80% + winning ratio strategy
- 1:2 risk reward then 50% + winning ratio strategy
- 1:3+ risk reward then 30-40% winning ratio strategy
- Make a trading plan: a training plan, plan that should containing set of rules that you follow while your trading, it should include risk management strategies, your discipline trading rule and your trading strategy.
- Managing your risk: risk management is one of the keys to become a successful trader. Risk management contains setting up a stoploss in your trades, limiting your position sizing, not risking more than your trading plan.
- Trading journal: keeping a trading journal, can I help you to understand your progress, identifying your patterns and learn from our own trading mistakes, write down the emotion which you have while in your trade or while entering a trade write down the reason for the entry, write down the reason for the exit, each and every thing to be noted in order to understand your own self while trading. After a period of time, you can check out your training zone in order to improve further you’re trading in the future.
- Knowledge seeking: the market has different faces. It changes constantly so as it really you need to update with the latest developments and you have to continuously learn and adapt your strategy which can be modified in every market condition which is changing dynamically over the period of the time.
- Being discipline and patient: when you see all the successful trader, they have very strong discipline and patience They stick to the training plan had avoid distraction decisions. Which you need to implement in your Trading.
Trading is a marathon It is not a sprint, in order to become a successful trader. It requires hard work, continuous learning, right mind, focus, realistic expectations, quick decision maker.