Day trading tips that will transform your trading
CFD Knowledge Hub
Trading strategies
Day trading tips that will transform your trading
Day trading tips that will transform your trading
13 minute read
|
15 Apr 2024
Day trading tips that will transform your trading
Table of contents
1.
Trading Rules
2.
Trading guidance: what to do with big wins
3.
Trading tips from successful traders
4.
How to avoid common mistakes in trading
Even the best of traders do not make a profit with every trade, so it is important to remember that loss-making trades are inevitable, irrespective of how well you know the markets. The following tips will help you navigate the financial markets, enabling you to devise a sensible and stable trading strategy.
Trading Rules
1. Seek high value trades
As a trader, your objective is to make profits, and not place lots and lots of trades, which would normally just result in your broker getting rich. A fairly obvious but often forgotten rule is to know what sort of set ups are right for your strategy. Spend some time trying to identify your trading goals and resist the urge to buy or sell on a whim just because you feel you should be doing something.
2. Follow the market trend
Don’t forget that you are not an investor. If a trade goes wrong, don’t kid yourself that you are going to hang onto it for a bit longer as 'the market will come back' or on the hopes that 'the market is wrong'. We are constantly told that discipline is a big part of trading. This is even truer in the aggressive, shorter-term time zone of the day trader. Don’t let one big loss ruin lots of perfectly good trades.
3. Know when to take profits
It can be easy to get carried away when a trade starts going in your favour, with many traders feeling that this is the one that is really going to go to the moon. In the same way that you have a stop loss in mind when you enter a trade, it helps to have an idea of at least where you want to take profits. Don’t let a solid profitable trade turn into a loser
CFD Knowledge Hub
Trading strategies
Day trading tips that will transform your trading
Day trading tips that will transform your trading
13 minute read
|
15 Apr 2024
Day trading tips that will transform your trading
Table of contents
1.
Trading Rules
2.
Trading guidance: what to do with big wins
3.
Trading tips from successful traders
4.
How to avoid common mistakes in trading
Even the best of traders do not make a profit with every trade, so it is important to remember that loss-making trades are inevitable, irrespective of how well you know the markets. The following tips will help you navigate the financial markets, enabling you to devise a sensible and stable trading strategy.
Trading Rules
1. Seek high value trades
As a trader, your objective is to make profits, and not place lots and lots of trades, which would normally just result in your broker getting rich. A fairly obvious but often forgotten rule is to know what sort of set ups are right for your strategy. Spend some time trying to identify your trading goals and resist the urge to buy or sell on a whim just because you feel you should be doing something.
2. Follow the market trend
Don’t forget that you are not an investor. If a trade goes wrong, don’t kid yourself that you are going to hang onto it for a bit longer as 'the market will come back' or on the hopes that 'the market is wrong'. We are constantly told that discipline is a big part of trading. This is even truer in the aggressive, shorter-term time zone of the day trader. Don’t let one big loss ruin lots of perfectly good trades.
3. Know when to take profits
It can be easy to get carried away when a trade starts going in your favour, with many traders feeling that this is the one that is really going to go to the moon. In the same way that you have a stop loss in mind when you enter a trade, it helps to have an idea of at least where you want to take profits. Don’t let a solid profitable trade turn into a loser
