How To Make Day-trading Easy
Posts: 513
Member since: 08/02/2011
Day-trading as you already know by now has the power to offer many advantages over a short time lapse. It’s no wonder that so many people get interested in day trading.
A day trader is basically an individual that holds onto their position for a day only. He is usually out of the market at the end of the trading day thus monitoring all trades taken in real time. This type of trading can be very rewarding if proper rules and money management are followed. It comes also with lower risk, due mainly to smaller losses. A lot of new aspiring traders are attracted to day trading because of these particular features.
However, day trading as good as it seems also carries some major disadvantages. You see, a lot of new aspiring traders tend to enter the forex world with one major goal, to make a ton of cash in record time. This mentality usually leads to:
· Over-trading
· Stress
· Fear
All those attributes, if we may say so, may lead to the rapid depletion of your capital.
This happened to me too at in my early stage of trading. This, like it or not, is a common phenomena in trading. We as traders are highly exposed to such flaws and our main goal in the early trading period is to be able to overcome those issues by following a rock solid plan.
To tell you the truth, in my early trading days, I would be glued to my computer the whole day waiting for a trade set-up. I was too scared to miss a trade, so I deem right to stay in front of my PC for nearly 24 hours until the right set up happened. Well, most of the time, I found myself so exhausted that I could hardly think straight. My focus was all out of whack. I was constantly stressed and my social life was slowly fading.
At this point, I knew that something needed to be done if I wanted to build a career out of trading. Besides, my dream was to leave my 9 to 5 job in order to have a better life. If being slave of my computer was the outcome, I would be better off working for someone else.
I took a break from trading for nearly 2 weeks just to refresh my mind and rethink of my strategy to tackle the Forex world. This was not an easy decision as my ego took a beating. However I had to choose either to keep on going and blow my account or reassess my whole approach to trading. The second option was undeniably the one to go for.
This was one of the best decisions I would take to guarantee my success in trading. I wrote down all the things that made my trading worse. Those were what I got out of it:
· Stress
· Over trading
· Fear
· Lack of energy
The four components above were playing a crucial role to my failure in trading. I clearly had to bring some changes that would dramatically reduce the possibility of the above to occur.
My plan, believe it or not, was very simple. I went back to my platform to pin point at what time the market tends to move the most in a day. My thought was that if I could pin point a time where the currency pairs have the tendency to move the most I could start trading at around that same time everyday. My analysis was of great help to my trading as I realize that the London market had a tendency to move some of the currency pairs quite drastically.
From then, I started to monitor the market at the same time everyday and trade accordingly using my strategy. I was amazed by the result. I was making more profit in 3-4 hours of trading compared to trying to trade the whole day. Consequently my stress level decreased, I was in control of my emotion and on top of it all I had still energy left to enjoy life. Trading, to my eyes, was stress-free from then on.
I basically changed one simple component in my everyday trading and that played a major part in my success in the currency world. This is a change that you too may bring to your trading if you want the odds to be stack on your side.
The point of this story is to show you that trading is best done at certain times of the day. This is the time where most banks and large institutions get active in the currency world. They move the market and thereby increase volatility on major pairs.
Volatility = Profit (as far as I am concern)
It's not about working hard it's about working smart
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Posts: 118
Member since: 05/12/2010
hi scorpion,,,,this is a great topic to start.
I start know forex 1,5 years ago, and this time, I'm on situation like you did........I'm stuck on my PC just to watching price movement and OP when price run fast...and its really exhausted..
can you share your trading technique, indicator, and the most important is your decision to OP, based on technical indicator & price situation....
Posts: 513
Member since: 08/02/2011
Originally posted by widhie75hi scorpion,,,,this is a great topic to start.
I start know forex 1,5 years ago, and this time, I'm on situation like you did........I'm stuck on my PC just to watching price movement and OP when price run fast...and its really exhausted..can you share your trading technique, indicator, and the most important is your decision to OP, based on technical indicator & price situation....
hi dear can you add me here so we can chat online for these topics and sharing our experince and talk about this .
http://www.xynafx.com/ Xynafx ... fund managers and forex signal service providers Minimum investment for our Forex managed Account service is $2k that will be managed individually in one investors account. XynaFx signals As low as $26 per Month.
Posts: 939
Member since: 21/04/2011
Learning forex can take more than 5 years sometimes. It depends on how ur brain analyzes things. It is like making a strategy based on price movements of 1 month and the next month ur strategy fails bcoz of "unexpected" price movements. They r unexpected bcoz u never faced them before. Then u make strategy with more care and by taking into account more possibilities. But forex market makes more "unexpected" moves after few weeks. In this way you keep changing and updating ur strategies. No one can master strategy behind each and every move. So you must concenterate to make a strategy that can bring you maximum net pips in the end. It is quite possible that u loose more trades than u win. But if u r good with money and risk management and you know ur SL and TP then u may become successfull.
Forex trading requires a lot of concenteration. It is not just a "luck" game.
Stick to your rules
Posts: 836
Member since: 16/05/2011
Another good article. But during trading, why traders forget these points.... I can say one thing for sure that it is very hard to learn just by reading. Traders can only learn from mistakes.
Posts: 359
Member since: 21/05/2012
I think this is all about realistic expectations, which unfortunately forex does not give, because you can make so much in one day, yet can lose more the next day. Consistently trying to chase that winning day (which must be possible) leads to overtrading and frustration.
Posts: 939
Member since: 21/04/2011
I read somewhere that forex is not a oneday game, it is multi-year marathon
Stick to your rules
Posts: 359
Member since: 21/05/2012
A marathon where you don't run everyday!
Posts: 118
Member since: 05/12/2010
Posts: 72
Member since: 14/02/2015
The best way is to work on developing good strategy; it is not possible to succeed without good strategy. The best way to go about doing this is through regular practice and through demo contest. I am lucky enough to be with OctaFX given with their demo contest like cTrader and Champion, I can really practice well and push myself towards figuring out best way to move forward and making trading easier for myself in every way and also helps adapting to different situations.