How do I start day trading?
You start day trading by start losing.
If your capital is 100k, then just start with 10k first. No matter what, you are going to lose all in the beginning. It doesn’t matter, how many books you read, how many hours you spend on listening you tube videos/podcasts about trading. Eventually you would blow up your account, only then you would realize the importance of risk management. That’s why it is important to start with small capital. People tend to ignore this during the learning phase, as its the boring chapter.
So don’t keep going demo trading/paper trading, just directly jump into it but start small.
And stop watching CNBC or any other TV news channel during market hours. Its definitely not going to help you. It only increases the noise and affects your trading decisions. Other than Trading rules and Trading terminal, you really don’t need anything else on your computer screen.
Do not look for reassurance from Twitter Traders.
Suppose, you go long on a stock, and as soon as you place the trade, you open up Twitter or any other trading forums, and start looking for posts related to the stock you recently took trades on and you would keep searching for people who have gone long on the same stock. Just to assure your mind that you are on right track.
Even if you come across certain posts who have gone short on your stock, you tend to ignore it. So when you see some posts similar to your trades, you kind of feel more confidence. This is utterly nonsense. Don’t do it. So do not use any of these social media accounts/forums when you are trading.
Above all, Follow a trading system with strict discipline. That’s the holy grail in markets, just executing your trading system flawlessly is what separates professional traders from amateurs.
An amateur trader feels GOOD after making a good trade.
A professional trader Feels NOTHING after making a great trade.
Following a mechanical trading systems helps you in keeping your emotions under control.
Tags | day trading strategy,intraday,trading,Trading psychology