1. Trade the morning session in Europe only (Obviously not possible if you are in the USA). I find the support & resistance levels tend to be more reliable before the US open.
2. Use basic technical analysis - Trend following, Fibonacci, trend lines, candle formations, candle patterns & moving averages.
3. Study different time periods that are appropriate to your style of trading.
4. Do not focus on indicators alone - they are much easier to follow but can be misleading (stochastic, RSI, MACD etc)
5. Learn that the most important thing about short term day trading is not figuring out which direction the market is about to go in the next few minutes, hours or days. No one can do that consistently…not Soros, not Buffet, none of the famously successful find managers.
6. Teach yourself how to trade support & resistance.
7. Never risk more than 5% on a trade.
8. ALWAYS ALWAYS ALWAYS PLACE STOP LOSS ORDER WHEN YOU ENTER A TRADE AND NEVER MOVE IT AWAY TO INCREASE YOUR POTENTIAL LOSS.
9. Start on a demo account for the first few months at least & don’t fool yourself in to thinking trading is a fast track to riches. I have been doing this for 30 years and have friends who have become wealthy but they still don’t find it easy, they still have big losing trades and none of them made their money over night.
10. Learn more at www.daytradeideas.co.uk
2. Use basic technical analysis - Trend following, Fibonacci, trend lines, candle formations, candle patterns & moving averages.
3. Study different time periods that are appropriate to your style of trading.
4. Do not focus on indicators alone - they are much easier to follow but can be misleading (stochastic, RSI, MACD etc)
5. Learn that the most important thing about short term day trading is not figuring out which direction the market is about to go in the next few minutes, hours or days. No one can do that consistently…not Soros, not Buffet, none of the famously successful find managers.
6. Teach yourself how to trade support & resistance.
7. Never risk more than 5% on a trade.
8. ALWAYS ALWAYS ALWAYS PLACE STOP LOSS ORDER WHEN YOU ENTER A TRADE AND NEVER MOVE IT AWAY TO INCREASE YOUR POTENTIAL LOSS.
9. Start on a demo account for the first few months at least & don’t fool yourself in to thinking trading is a fast track to riches. I have been doing this for 30 years and have friends who have become wealthy but they still don’t find it easy, they still have big losing trades and none of them made their money over night.
10. Learn more at www.daytradeideas.co.uk
