Day Trading - a Useful Article for Beginners

By: Markus Heitkoetter

Day Trading is a very exciting profession. It is one of the most popular forms of trading because all you need is a computer and an Internet connection. For those day trading futures, the Emini Stock Index Futures have become the most popular day trading vehicle because of their liquidity, leverage, and the ease of trading them online.

Please note: The principles presented in this article mainly applies to day trading. But these principles can also be used for stock trading, fx trading and trading stocks online.

What is Day Trading?

Those who do day trading usually buy and sell financial instruments during the same market day and, as a general rule, do not hold any positions overnight. Traders that participate in day trading are called day traders.

But don't be fooled by all the glory of day trading. Day trading is not for everybody, and anybody who wants to work as a day trader needs lots of skills and financial knowledge in order to succeed. If you read too many websites about day trading, you might be lulled into believing that it's all incredibly simple.

Day trading is like running any other kind of business. Be aware that when you engage in business your investment is always at stake.

Here are some tips that will help you to succeed with day trading:

  • Always trade with the trend.


  • Have a trading plan that sets out your financial goals and why you are taking on this role of being an active investor.


  • Never let a gain turn into a loss.


  • When the market does not perform as you expect, it is best that you do not trade at all. You can always trade another day.


  • Be flexible.




Characteristics of Successful Traders

If you want to succeed with day trading, then you should do exactly what the professional traders do:

  • A successful trader knows that a "good" trade is made when you follow your trading plan to the letter regardless of a profit or loss result.


  • Winning traders understand that winning in the markets means "cash flow".


  • Having "No Fear" to take the next and the next and the next trade no matter what.


  • Successful day traders do not seek to blame someone else for their loss, and they don't dwell on it. They attempt to learn from their mistakes and move on to the next trade.


  • A winner realizes that he produces the emotions he experiences related to day trading and assumes responsibility to resolve deep-seated root causes for negative emotions that interfere with his trading business.


In Conclusion

Constantly evolve your trading edge to stay ahead of the crowd. Don't try to be a perfectionist. If you have a perfectionist mentality when trading, you are really setting yourself up for failure, because it is a given that you will experience losses along the way in trading. Think of day trading as a probability game. Don't gamble with your money - plan it out the smart way. Although day trading is risky, it does have big rewards if you know how to play in this game.

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