When it comes to day trading, things are really hard. The majority of the long-term traders suggest the new traders trade the market in the higher time frame. The position trading strategy is considered to be the best way to limit your risk exposure. However, some people love to trade the market in the lower time frame and want to book quick profit. Day trading, then, is only for the experienced professionals. You must have a very clear knowledge about the trading industry to execute quality trades with an extreme level of precision. Most importantly, you must learn the advanced art of trade management to save your investment from the wild spikes of the market. Let’s explore four amazing day trading tips which will eventually change your career.
Start using the retracement tools
We all know Fibonacci retracement tools is the best way to make money in the online trading industry. People don’t really understand why they should use the Fibonacci retracement tools. Unlike the novice traders, the pro-Singaporean traders know the importance of market trend. When we talk about the market trend, Fibonacci retracement tools are the best options for you. There is three major retracement level which you can trade and these are 38.2%, 50% and 61.8% retracement level. Though you can make a decent profit by setting pending orders at that level those who want to day trade should take some extra steps. Start using the price action confirmation signal, as it is one of the best ways to find great trades.
Advanced method of risk management
We all know the famous 2% rule of money management. In the options trading industry, this rule doesn’t really work. At times you need to take more than 2% risk when you day trade the market. You need to understand the sentiment of the market to become a professional day trader. Instead of risking 2% on a quality trade setup, increase your risk factors up to 5%. If you are completely new to this industry, stick to the simple 2% rule of risk management. Similarly, when you are not sure about the market trend, you should risk less than 2% in each trade. Never follow a fixed percentage rule to trade the market. Learn to tailor your plan according to market demands.
Stop using EAs and indicators
EAs and indicators don’t work at all. People think expensive EAs and indicators is the easiest way to find great trades. It might help you to make some profit for a few months but after that, you will have to lose a huge amount of money. The pro-Singaporean traders always consider manual trading strategy is the best way to make money. When it comes to indicators people always overload their trading charts with a hope that it will help them to make more money. But in reality, it never works. Always remember, a simple trading system is the best way to make money from this profession.
Analyze the news factors
New traders never analyze the fundamental factors of the market. They simply use the technical data to execute trades in this market. On the contrary, the pro traders always blend fundamental data with the technical ones. When you develop your trading strategy make sure you consider the fundamental factors of the market. At times you might get confused while analyzing the fundamental data but if you deep think about the topic you will have a clear idea. Becoming a day trader is a complex task. If you can follow the simple rules of trading business, you can change your life very easily. No matter what happens, never risk any amount which you cannot tolerate.