People with a stable and good internet connection tends to work from home rather than working from the office. These are some people who want to work for some side hustle so that they will achieve their financial goals anytime in the future.
One thing they have discovered is that in the stock market, there are the living “Day Traders” where they trade in the market for a day from the opening of the market until the market closed. With the right amount of capital and side hustle scheduled, they can already trade in the market. But the real question is, are they really ready?
It is not easy to day trade without any system and discipline on yourself. With that let’s take a look with the 5 tips to become a successful Day Trader.
Risk Management
Risk comes from not knowing what you’re doing – Warren Buffet
In trading, we all know that you can’t control the market and you can’t control the number of participants who will participate in the market every day. You can’t even control the volatility that will happen on the market. To avoid being whipsawed by the market, you must control your risk in every trade. You must set for yourself a risk appetite that you are willing to risk per trade.
Control your psychological state so that when the market goes against you, you won’t be emotional because the market is just being abusive to you. Know your timing of entry and exit before trading the market so that you won’t get stopped out easily. When it comes to the risk reward ratio, always get a good risk reward ratio that will help you to be profitable in the long run. Always and always put a stop loss and follow that stop loss plan so that you won’t be dragged by the market.
Cut your emotions
When you get your profits, avoid being too happy and when you take your losses, avoid being too sad that will force you to quit trading. A good trader will always be a robot because they trade without the emotions and stay neutral as long as they are in the zone of trading the market. The only rule in emotions is to control it and think properly while trading the market.
It is not about the gains
In the market, it is not always about gains, it is about being consistent in your trading plan that will help you to survive in the market. Once you are in the mindset of focusing on the money not the trading plan. I imagine that you will be affected by the greed that will lead you to terrible decisions when trading. That is why always focus on your trading strategy, stick to it and follow it no matter what because you created it.
Follow your Plan
“He who fails to plan is planning to fail” -Winston Churchill
Now that you have a trading system then always follow it. All you need to do is to follow your plan and nothing else. Always have an entry and exit, control your psychological state and know your risk management techniques. This will help you to survive in the market as a day trader in the long run. In the end, if you follow your trading plan, you will be a profitable trader in the future.
Stay Disciplined
When you wake up in the morning what do you always do? Open your phone? Take a bath? Eat? Meditate? Or sleep again? The next action will help you to stay focused on the course for the entire day OR will make you do nothing for the whole day. Choose your decision well and stay disciplined on your routine. This also applies in the stock market.
Do you follow your trading plan consistently or do you break your rules when the market goes against you? It is your choice if you will stay consistent with your plan and become a successful person one day or trade and trade and trade like a machine gun without stop loss until your capital will become 0. Again, choose your decision well.
