HOW TO MAKE A LIVING DAY TRADING

Day Trading is becoming highly popular amongst the forex trading community today as more and more forex traders would prefer it to trading long term. Trading as we are all aware of requires an accurate knowledge, of the forex market, which off course once without, could result in a disaster when involved in the real time market situations. One could end up losing an entire account/portfolio, in a matter of minutes without knowing what hit them. This truth is not meant to scare you away but to keep traders both newbie and experienced alike on their toes. So the question would be, “how could you avoid such scenarios, to make a living day trading”.

         SCALPING AND SHORT TERM TRADES

In order to be a successful day trader, you would need to be a good scalper, or basically just making sure that, your open position/positions do not exceed a few minutes to a few hours of the particular day it was placed. To cut it short, you need to place short term trades. In turn, it would require quite a bit of your time, as the market does not stay in one spot for long,-especially in a range bound market situations-.  So you would need to map out for yourself a sort of time table, which should best suit, your schedule. This is so that you do not mix your real life concerns with business. After all, if you must live on it,-day trading- you must give it the much needed attention, only as at when due. Since everyone is different, so obviously, schedule and timing would be as well. Learn to do what works for you, as what may work for another may not work you.

         SCHEDULING AND TIMING

A full time professional day trader, could choose to begin trading, from seven (7am) (GMT) in the morning up until ten (10am) (GMT). Intermittently allowing for an “R&R” should help the brain not get over active and still be able to make good trade decisions, keeping in mind that the brain, can only function effectively for so long. Deciding to trade the whole day is time consuming and would impede other aspects of one’s life if done that way. As a trader you should decide of your own volition when and how long you should commit to trading daily.

         MIND FRAME

Having the right frame of mind is also paramount. This is because getting into a trade when you have other things that bother your mind, when you should be concentrating on your charts, is a sure way to much bad chart analysis that could lead to losses. Do ensure to give it your full attention, if possible have an office/trading room where no one can interfere with your work. Applying what you have been taught with experience in real time demo trading should set you off on the right path to succeed as a true “Day Trader”.

Visit: www.fxtrendman.blogspot.com / www.trendman3.wordpress.com for more incisive experience with what you need to know.

Ephraim Archibong is a trader of over four years and counting and is willing to share his knowledge and experience with anyone who is willing to learn.