Day trading can be a dream job that is suitable for many people. Armed with only a laptop, you can trade anywhere in the world. Just think – sitting on a balcony of your hotel room in the Bahamas while happily earning money to pay for your trip.
It’s a perfect fill-in for those who have a job but want a little more excitement. And to earn a few extra bucks in their spare time. But if you’re day trading for a living, then you really need to get your act together ahead of time to give yourself the best possible odds of earning the money you need.
How it All Begins
The first question would be, what do you need to get started?
The obvious answer is a laptop with a good internet connection, but that should be the least of your worries. A bank account with at least a few hundred dollars is the minimum you’ll need to get going with forex.
But besides all of that, you must spend adequate time hitting the books. By that, I mean you need to immerse yourself in books, blogs, articles and testimonials from anyone who has information on trading forex.
A good way to go about doing this is to identify a forex guru and follow him/her. Get advice and understand how to read the charts. Learn from the mistakes others have made.
Setting Your Schedule
Once you’ve done your homework and created trading charts, you should set up a schedule for yourself. If you’re trading forex, then determine the foreign currency pairs that you want to trade. You have the choice of trading 24 hours a day, but don’t fall into that trap!
For best opportunity, choose hours where the markets overlap; for instance, the USD and the EUR. Once you start day trading, it can be easy to sink in so far that you don’t come up for air.
To be a successful trader, you need to set up a schedule, make your trades with stop/loss and then step away. Get some exercise, breathe a little fresh air and clear your mind. Don’t let day trading take over your life.
Once you are into the day trading scheme of life, take the correct steps so you can stay in it for the long run.
Place a limit on how much you are willing to risk on each trade and on a daily basis. Stick to your trading charts during a trade, but tweak them when necessary.
Always follow up each trade by making notes in your journal. Study your journal so you can see if there is a trend in your trading style that needs to be adjusted.
But most of all – make sure you are getting the fulfillment from day trading that you expected. This will not happen if you moan, groan and stress over each and every trade. Study the charts so that you will be confident in your style and then enjoy the ride!