Perhaps You are so tired of your dull job and would like to start day trading business from home. You believe it is very simple and you will soon trade for a living.
In fact, you are probably just starting. Now I will give you some best day trading tips. They apply to forex trading and stock trading market.
First of all, you should take the day trading business seriously. Novices are constantly finding day trading tips and tricks. They believe there must be shortcuts to success. Yes, there is a day trading secret in the world. That's success comes from hard work and execution.
Second, you should build a day trading plan and keep a day trading journal. Many beginners just want to earn extra income. They don't treat day trading as a important business.
Third, develop a solid day trading strategy that fits you. I think day trading is not for all traders. Therefore, you should know the different types of trading styles. The following is my day trading strategy:
- I will use a trend line to identify the major trend on the four hour chart.
- If I had spotted a trending market, I will use the 10 and 20-day moving average crossovers on the one hour chart.
- Once I have identified a ranging market, I will use the grid trading strategy on the one hour chart.
Fifth, I think you have read many best day trading books. Now it's time to forget the popular day trading strategies of the books. You should analyze, track and measure your day trading performance.
Sixth, you must open a demo account and practice, practice, practice your day trading strategies, I can't say it enough!
- You should take demo day trading seriously.
- You should write a day trading plan and keep a trading journal with the demo account.
- You should develop a solid day trading strategy with the demo account.
Best day trading tricks for beginners
I have evolved a lot of ticks in my day trading career. Today I am going to explain my best day trading tricks for you.First, write a quick checklist before entering trades.
In the beginning of my trading career, I often missed the real entry and exit points. So I often ask myself: how will I find the entry and exit points in time? I think there is only one right answer！
Second, every day trader should know the best chart patterns.
You think only use day trading indicators will be enough? I know that's not enough. You can't afford to forget the top 10 chart patterns. For example:
- Reversal patterns
- Bullish flag
- Double top and bottom
- Cup and handle
Even if I am a day trader, I don't want to miss any major trend on the daily chart. These are my tricks.
- Use my eyes to determine the direction of the trend.
- Draw a trend line to determine the major trend.
- Spot trends with MACD indicator
- Use ADX indicator to find day trading trends
- Identify a trend using Bollinger Bands
- Use multiple time frame analysis to find better entry and exit points.
- Draw a trend line on the chart to identify an earlier entry point
- Use MACD & Bollinger Bands to time entries and exits and stay in trends
- Use ADX indicator as an entry and exit filter
Novice traders often trade a fixed lot size. I don't think it is a best money management strategy.
In contrast, professional day traders will use position sizing techniques to increase profits. For example: grid trading systems, martingale trading systems or pyramid trading systems.
Next I will show you grid trading strategy.
First, even I am a day trader, I wouldn't like to miss any main trend on the 4 hour chart. So I will use a 20 day moving average to identify the trend direction.
Third, once I have identified an uptrend on the 4 hour chart, I should decide to go long a currency on the one hour chart.
Don't try to find the best day trading tips and tricks. You have to write a day trading plan and keep a day trading journal. I believe that it is the real secret of day trading.
Futher reading: when is the best time of day to trade forex?
Here the comparison of FOREX VS STOCK
ReplyDeleteWhat is Forex?
The foreign exchange market is a decentralized, highly liquid market where you can trade one currency against another. This market includes traders/investors from around the globe. The major players of this market are investment banks, central banks, hedge funds, and commercial companies.
Currencies can be exchanged anywhere over-the-counter and can be traded 24 hours a day, 5 days a week.
What is Stock?
Stocks are shares of public listed companies which are traded on the stock exchange. A stock exchange is a marketplace where traders buy and sell stocks. Stock exchange provides a regulated and transparent platform to buyers and sellers for trading.