Day trading is often considered to be the riskiest profession in today’s world. The experienced Aussie traders often say position trading is the best way to establish yourself in the professional network. Though day trading is extremely complicated many experienced traders are leading an amazing life based on day trading. They know the proper way to manage their risk factors. The new traders don’t really understand the importance of proper discipline. If you do some research, you will be surprised by the experienced traders are making tons of money due to their smart moves. They know the proper way to manage their risk exposure. Today we will share some amazing tips which will help you today trade the market just like the profitable trader.
High-risk reward trade setup
As a day trader, your first priority should on finding the high-risk reward trade setup. The novice traders always trade with negative or 1:1 risk reward ratio. But do you really think you can make a decent profit at the end of the month by following such statement? The simple answer is NO. Try to focus on the higher time frame trade setup as it will help you to filter the best trades. In lower time frame trading you will always have to deal with the false spike. To be precise, you won’t be able to find quality trades as a day trader. Even though you will be day trading the market, it's highly imperative your stick to the higher time frame trading signals.
Use the most reliable price action signal
Price action trading is extremely popular among the successful traders. This system is based on the different formations of the Japanese candlestick pattern and it allows the retail traders to execute quality trades with an extreme level of precision. Forex trading is an art and you need to understand the basic rules of investment. The expert day traders always believe in an organized approach in the retail trading industry. Instead of using the indicator based trading strategy, they are using price action signal to make more money. As a price action trader, you will be able to execute quality trades with a very tight stop loss. And most importantly it will help you to minimize the risk factors for investment business.
Assessing the fundamental news
The day traders should have a very clear idea about fundamental analysis. Fundamental analysis is nothing but studying the performance of the global economy. Let’s say you are trading the EURUSD pair. All of a sudden you have noticed the price of EURUSD has dropped more than 200 pips. Those who have clear knowledge on fundamental analysis can easily explain such situations. High impact news like interest rate decision or NFP can create an extreme level of market volatility. So if you fail to assess the fundamental factors, it’s very obvious you will not make any money as a day trader.
Believe in yourself
Do you know confidence is the key to become a successful trader? As a day trader, you must have extensive experience in the retail trading industry. Those who don’t understand the nature of this market should use the demo accounts. Demo accounts will give you the perfect platform to develop your skills. Being new to this industry doesn’t mean you will be trading without any logic. Even after doing all the homework you will have a tough time as a day trader. But if you trade this market with confidence it’s just a matter of time to understand the rhythm of this market.
Some of you might be following other people in the trading industry. But do you think the successful traders have Holy Grail? They are also trading based on probability factors. So stop following other people