Day trading is an act of buying and selling the financial instruments or securities even multiple times within a single day. Doing it correctly, anyone can improve their trading skills. But it may consist lots of risks for newbies or anyone who doesn’t follow a well-thought-out strategy. Almost all the traders perform day trading but it’s not suitable for all of them.
Let’s see some of the tips to make your Day trading better:
1) Understand the market thoroughly
The traders can’t apply this tip to general trading procedures (although it is essential to know and understand them) but rather to major events that takes place daily. Every trader already know that important news and announcements have the potential to move the market. Remember that even when trading in shorter time intervals, fundamental factors can still affect the outcome of your deals
2) Allocate funds
No matter how much money you allocate to each and every trade, it should be thoroughly calculated. You should never invest a fix amount neither the whole of your investment. Rather you should make a strategy of investing 3% to 4% of your total balance. It should never exceed. You should keep yourself safe from a losing streak.
3) Set aside time
Day trading needs a scheduled time as it is a time-demanding pursuit. In fact, most of the successful day traders spend their whole day doing trade as a job holder spends his whole day working in office. Day traders do not have business hours and usually spend time monitoring the markets as much time as they can. Day trading is never an easy money, it needs time, effort and passion.
4) Time your trades
It is essential to see the right time to pick the right moment to open your deals. The experienced traders always enter the market when the volatility is high. Since Forex is traded 24*7 globally, with New York, London, Singapore and Tokyo being the most notorious exchanges, the highest volatility will be observed when there is more than one exchange is open. Certain specialist, however suggest novice traders to trade when the market is less volatile, to manage their risk properly.
Anyways, it is up to you to find a suitable entry and exit moment, trading style and develop your trading strategies accordingly.