Day trading is a growing trend and a great way to earn an income, whether it be on a part time basis as a second form of income, or as a full time career, earning potentially more in just a few hours each day, than by doing a regular 50-70 hour week!
So, providing you have a decent internet connection, let me simply start by giving you my seven fundamental rules to helping you achieve financial freedom by making good consistent profits, instead of losing money like the majority of traders.
1. The 1% Rule! Never trade with more than 1% of your capital. For example, if you have a $10,000 account and take $100 (1%), then simply divide that by your reward:risk ratio (this can either be 2:1 or 3:1).
2. Control Your Emotions. Greed & Fear drive the markets, so setting targets with a clear mind, will help you to not be influenced in making decisions purely based on your gut instinct, but rather on calculated risk, which is a good thing!
3. Learn From Your Mistakes. It is very important to keep a diary to log your trades as well as your emotions in terms of how you reacted which may have caused you to make an error. This can simply consist of a few comments next to your figures not forgetting to include time & date of trade.
4. Learn From The Best! There are a number of courses and experienced pro traders like myself out there, who offer complimentary advice, tips & data to help you learn and achieve. I once had a trading coach who believed that knowledge really was power and shared the same philosophy that if you have the know, there is enough money in the world for all to live comfortably, so why not you?
5. "Money Money Money!" Don't think how much you can make, instead seriously consider how much you're prepared to lose before entering any trade. This will then also help keep your emotions in check and enable you to better focus so you're not surprised if you lose. Think like I do, I calculate my risk then pretend like I've already lost it!
6. Think Big, Think Bigger, Start Small. Like everyone who starts out trading, setting goals/targets is a must to give you something to aim for. You, however, can easily get over excited about the potential for financial freedom in terms of how much you can make to buy all your materialistic goodies and provide for your family and although there is nothing really wrong with that, it just comes back to controlling your emotions and staying focused. So, stick to your rules and above all, be patient as this is one of the single most important factors to trading. Amateur traders try and trade everything due to boredom, whereas the pros will sit on their hands and wait for the best of the best opportunities and make a killing, often in less time it takes to make dinner!
7. "Trade Your Plan, Plan Your Trade." Finally, what I mean by this, is discover a set of profitable strategies/techniques and master them. This will incorporate all of the above rules for you to stick to and not deviate from. Once you implement these best practices, there should be nothing to stop you achieving your financial goal!
Find out more about How To Become A Successful Day Trader!
Dominic Nardone has put together a complimentary report on Day Trading that will help make you successful. To download it instantly, just visit
FOREX SAFE TRADING TECHNIQES
