Today we will talk about a day trading.
Day trading is not considered an easy task, but it is quite profitable.
There are some secrets that every trader should know.
These secrets will greatly improve your trading and free you from unnecessary stress.
SECRET 1 – Do not trade below H1
During the day, the trader uses setups that will often give false signals on small time frames, making the trade jumpy and unprofitable.
On H1 and higher time frames, setups render much better and there will not be as many false signals as on small time frames.
The larger the time frame, the stronger the setups will form on it.
SECRET 2 – Don’t do too many trades
Even if you think that day trading involves a large number of transactions, this does not mean that you should open trades frequently.
Each trade must be entered after the setup signal don’t open trades just because you want to.
Look for clear signs, like in books.
Wait, don’t rush.
SECRET 3 – Number of tools
Day trading involves a lot of quick decisions on the part of the trader.
If you follow 30 pairs at a time, you will not be able to clearly analyze the market and you will not be able to make the right decisions.
There are enough deals on the day, so watch out for 3 pairsno more.
For beginners and it will be a lot, start with a couple and as you get better add more charts.
Don’t make it difficult for yourself, it’s not easy.
SECRET 4 – Risks
The old risk rule still works and works well.
Risk no more than 1% of your capital in each operation.
This rule applies more to beginners.
Experienced traders can deviate from this rule and take a bit more risk.
But this applies to experienced traders and even they should not risk 50% of capital.
It’s too much.
SECRET 5 – News
News has always influenced and will influence the market.
If the news is not so terrifying for the long term, for the smaller ones it can become a great loss.
Do not trade half an hour before the release of important news.
This is a dangerous time where the market can go either way very quickly, stopping your position.
Don’t risk it.
End of the first part.