Make a trade plan and then trade your strategy. The first step towards “trading like a pro” is preparing. This includes, the instruments used to trade as well as the strategies for the most effective starting point for trade, as well as management of the transaction managing money and risks. A serious day trader should never ever trade without checking the economic news. It is crucial to be aware of the time and date of the most important economic news prior to deciding the possibility of entering into a trade. It is the only way to avoid economic news. You can look up economic information financial news at Google/finance, Yahoo/finance, and on MSN/money. Then you can decide on which option to take according to fundamentals or technical analysis.
As a day trader you must observe the opening bells of London at 3am eastern time and 8:30 am London time, and at the New York opening bell at 09.30 am eastern time, 14.30 London time. It is important to wait for the opening bell to ring before trading. After preparing the eight steps to take for “trading like a pro”. Here are the steps to be taken care of from Trading Expert David Goodnight
First step after day trading preparation: 5% rule
It is crucial to realize from the beginning that day trading is a risk. Every trading choice is not risk without risk and will carry aspects of risk. Traders need to ensure their investment capital is protected at all costs. One of the most basic rules for managing risk and money is to only use five percent of your account for trading. If you are able to open 5 trades in a row, then the amount allocated to these five trades should not exceed 5 percent of your account for trading. When you reach five percent mark, you should not make any further trades.
Second step to the daytime trading like the pros
Typically, traders be trading in the London session as well as in the New York session and the Asian session. It is typical to miss the opportunity to sleep well, and to trade continuously. The primary issue here is over-trading. Every trade that is made, traders have to pay brokers, in terms commissions. It is crucial to manage the amount of trades you make to ensure that you do not pay too much in commissions. To prevent taking unnecessary trades to enjoy the benefits of trading traders must always be asking themselves: Is it worthwhile to participate engaged in this business? The expected return must be by at least double the risk. The risk-reward ratio needs to be considered prior to entering into the market.
Third step to day-to-day trading as the pros
If you decide to buy or sell at the right time and purchase or sell in the right time, it is an advantage. However the moment you sell or purchase at the wrong time and in the wrong spot and at the wrong time, you’ll lose money. Being able to make good decision quickly and be able to discern the meaning that the market is using or the momentum indicators will enable traders who trade on a daily basis to trade as an expert. Trading on the day is very serious game like American soccer or even rugby. If one buys another, the other is selling. So, it is important to choose the correct strategy for every trading problem. Trending strategies are best used during a time of trending, and using a range trading strategies during the low volatility time.
Step 4 in daytime trading like an expert
Utilizing indicators for day trading. One reason why traders fail to make money in day trading is due to make mistakes or don’t understand the indicators. A lot of indicators simply repeat the pattern of the price. They are actually a an alternative version that are based on the same price. The price is the only indicator that can substitute for the price, the most important indicator.
It is the primary language used by all traders and doesn’t hide any information. It is imperative that traders be alert and be able to discern what the price is telling us. There are many indicators , however the price remains the same. The most effective method for trading on the day as a pro is to first look at the price first, before you look at the indicators. Then, you should look at the price prior to entering the trade.
It is crucial for traders to to master each indicator they’re using and be fluent in the language of price. If one must sell at every slow stochastic that is overbought and purchase at every slow stochastic, then the market will never be trending. The use of the slow stochastic in a way has led to more losses for traders that any other gauge. Day trading is not the same as gambling, and gambling differs than day trading as a professional.
Thank you for your time. make trades like a professional or learn how to trade like a pro.
Five steps to day trading like the pros
The concept of a stable datum in the market
“A stable data is a truth, it is a constant. A stable data is something that remains intact even in a chaotic environment”.
There are many reliable sources of data that are present in markets. The Fibonacci projections and retracements and the Elliott wave theories, the higher time frames are the ones that control low time frame, markets patterns (not charts patterns) and much more.
One of the errors traders who are unaware of the market are making is to utilize indicators or other tools to trade and not pay attention to steady date in the market. Making trading decisions based on stable datum will enable traders to win consistently trades. Often, traders violate an established datum when trading which can result in a huge sums of money.
In the 3rd Elliott wave of the uptrend the traders who are not aware of it are likely to be selling since many indicators give signals to sell when the smart money is buying. The simple inability to comprehend the steady data that is the basis of Elliott wave theory could result in the loss of money for traders. In a downtrend, in three Elliott wave in which all the money smart is selling, traders trading indicators instead of trading prices and in violation of the entire reliable market data are often unable to take advantage of the opportunity to sell, or boost their profits however, they will instead be unable to make the money. Another data that is stable on the market is market patterns and not chart patterns.
Market patterns include: Trend (pause), Trend. The market will move in a trend but then it will stop (consolidation interval or low volatility) and then the market will return to trend.
The ability to understand market patterns will help traders to devise the best and most effective strategy to achieve consistently successful trades. The most reliable and tested trending strategies are suitable for times of market imbalances. On the contrary, the rule of entering and leaving are designed for market balance.
As you can observe, the understanding of the market, its understanding and proper implementation of the stabile datum market are not to be ignored.
Step 6 in the your day to “trading like a pro”
The place and the time of the transaction
Often traders know whether the price will rise or fall however they’ll be incorrect about the exact timing and the location. Where and when to start the trade efficiently. The distinction between a successful trader and a big loser is their ability to discern the timing and place to begin the trade. Utilizing a more time-sensitive frame and a shorter time frame, allows traders to open the trade at the appropriate moment. But, understanding the language used by the price is crucial to a successful entry point. Trading Expert David Goodnight says two of the questions that traders must be asked are:
Is this the right moment to get into the trade?
Is this the ideal location to start your career?
This is about finding the most reliable “hot spot trading zones”
It is normal to receive a valid signal for trading in the wrong moment and in the wrong spot, however the most successful traders will be patient and wait for the price to be at the top of the entry range before they enter the trade. One typical instance is a buy or sell signal that falls within the Bollinger band (50,2). These imperfections are often corrected in the marketplace when prices rapidly pushed to the edge that of Bollinger (50,2). Usually, traders who are unaware of their position can be unable to recover. To be able to consistently profitable trades, it’s crucial to start trading at appropriate moment and in the appropriate location.
Step seven in day “trading like a pro”
The first step to becoming a disciplined trader is to have the desire. Professional traders will at some moment realize the reason for their inability. After losing consistently and repeatedly and with no discernible reason, following an honest review of their trading situation They will discover that their the lack of discipline has been hindering their progress, and they will decide to take the correct steps. This realization and determination is the first step to making a change to a systematic approach when trading.
Three important things to consider
The first is the best money management strategy
The other is a tried and tested “valid trading system”
3The final is self-control.
One of the most basic but most effective rules for managing money is to never expose more than five percent of your account for trading to dangers at any given moment. Never ever. We can assure you that you’ll be disciplined enough to observe this basic rule of money management. If you make ten trades in a row, the total value of those trades must not exceed 5 percent of your total trading account. When you have spent the five percent then you must wait until you’ve closed certain trades or make more money prior to initiating a new trade.
There is no one else who can take care of it for you. The decision, and the option are yours to make.
There are a myriad of trading systems , but only a few can endure the heat of trading with the efficiency of a pro. A good trading system is one that has at least one steady date and prioritizes price, which is the leading indicator. We traders know that we are trading on the price, rather than the indicator. A reliable trading strategy is an effective tool for trading however, like any other tool, one has to be able to master it and get comfortable making use of it. It’s not enough just to possess a reliable trading system, but to be aware of and be able to utilize it. This requires absolute discipline. Often, traders move from one system to the next without having a consistent approach. Some traders do not try the system prior to testing it or are unable to become familiar in the procedure. All professional traders have trading strategies that they have tried, retested, and are familiar with. Professional traders adhere to their trading strategies with a strict adherence However, not completely. Trading systems are crucial for day trading and help traders trade as a professional. But no trading system can ever be able to replace the trader. A trader who does not have a trading system will usually be not consistent in their choices. The most common trading system that are effective include “TSTW24”, “TSTW SYS 08”.
Be aware it is not true that all trading platforms are valid trading systems. A trading system that is valid must include the price and at least one reliable date. It is not a trading machine. The traders must be accountable for their trading decisions.
Self-control as well as day “trading like a pro”
Being aware of the type or type of trader that you’re is first step of self-control when trading. Are you a shrewd trader? Are you an anxious trader or emotional trader? Are you a reckless trader, serious trader, or a brave trader? Do you think of yourself as a sloppy or reckless trader? No matter what kind of trader you are but the market will humble you until you are able to manage your own behavior. It’s not enough to identify what kind of trader you’re, but to clearly identify your weaknesses and strengths. Take one piece of paper and write down in two columns your strengths and weaknesses. The aim for this activity is to identify the reason for your failure and fix it one-on-one. Note that there is an obvious difference of resolving the issue and managing the issue. Check out our previous article on how to handle the issue. If you recognize the errors you’re making, you’ll attempt to stop doing the same mistakes, or to seek help from a professional. What you’re trying to dois manage yourself and your actions and stop wandering around aimlessly. We expect on you to follow through and start enjoying your trading instead of being a slave to your trading. We have already said that trading can be enjoyable, however you must manage your behavior and self-control.
Step eight of Day trading with a professional Understanding and pleasure
It is not for enjoyment or excitement alone, but to earn money. It is the reward for your hard work. The main ingredient for consistently rewarding is understanding the market. It is possible to take money from the market from time to time but to be able to consistently win trades and to begin enjoying trading, you need to have a thorough knowledge of market. It’s about understanding the other players in the market, price as well as the financial instruments, and trading tools. This knowledge will enable traders to understand clearly the location and timing to begin trading. When the trader is an integral part of the market, or so it is they is able to at any time recover the losses incurred previously. The trader not only have developed the mentality that a professional trader would have, but also he has become an expert in trading the market, and is able to determine the outcome for his trading. This is the last stage of trading to become a pro.
Trading should be enjoyable and can be enjoyable but it is not a pleasure that can originate from a lazy and reckless approach to trading. It’s a matter of practicing and knowledge.
Whatever you do, no matter where you are, just enjoy yourself and feel very content. We wish you the absolute best of luck in trading. We hope that you appreciate this article and will implement it for the day to ” trade like a pro”.