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How To Become A Good Intraday Trader

By June 16, 2020 how to

Successful Intraday Trading Strategies

In order to become a good intraday trader, you must follow the golden rules of the successful intraday trading strategies. While some of them might seem obvious, it is easy to neglect them during the times of uncertainty and stress.

The simple yet vital intraday trading rules may seem somewhat way too simple to some. However, we strongly encourage you not to ignore these intraday trading tips and implement them on a daily basis.

How To Earn Money In Intraday Trading

To become a trader from home, not only do you need to have a solid grasp of theoretical and practical knowledge of intraday trading, but also possess an eagle eye for spotting details and the arising opportunities around you. 

Before you proceed any further, ask yourself “Is intraday trading gambling?”. If you answered “yes”, we’re afraid intraday trading is not for you. Statistically speaking, those who implement the gambling mentality while trading have the highest losing rate. 

Successful intraday traders understand the importance of a trading strategy, it’s implementation and correction. intraday traders that make money don’t rely on luck, but rather a well calculated plan of action. 

Another thing that doesn’t come easy when you decide to trade from home is self-control. Successful intraday traders don’t allow themselves to get carried away, overindulge and stress or panic over their losing trades. You will win and you will most definitely lose – this is just how intraday trading works.

Intraday Trading Tips

1. Manage Your Risk

The only way to make sure your life does not turn upside-down as a result of your trading mistakes is to never risk more than you can afford. Today, trading forex has become incredibly popular and widely available even to the people with no previous experience or investment background. While providing an opportunity to make passive (and active) income to everyone, many people forget that successful intraday trading requires proper understanding of the market, the practical knowledge of trading tools, as well as daily work and persistence. 

Risk management should be a trader’s number one priority, regardless of the circumstances.

2. Learn From Your Mistakes

Trading offers a great number of possibilities and opportunities to investors and traders alike. However, despite how successful one can be, everyone makes mistakes, which is totally natural. What differentiates a good trader from a bad one is that the former learns from their mistakes and doesn’t repeat them. 

3. Practice Flawless Execution

To narrow it down to just one sentence, successful intraday trading is about being able to identify trading opportunities and the actions you take. Exercise flexibility according to the level of market volatility. Follow the latest news, important economical updates, company reports and press releases. Your proficiency in reading technical charts, the implementation of stop loss and other market orders will minimise your chances of a negative outcome.

4. Your Risk:Reward Ratio Matters

A successful intraday trading strategy always includes a risk:reward assessment. Volatile markets, as we have mentioned earlier, provide multiple opportunities for intraday trading. However, it doesn’t mean that you should jump onto every single trading opportunity. Understanding the risk to reward ratio will equip you with an extra layer of protection from the unnecessary loss and save you time, so you can focus on the trades that are more beneficial to your trading portfolio. 

5. Set Realistic Goals

In order to become a good intraday trader, you must find ways to encourage and self-motivate. Nothing can compare to the way a winning trade motivates you to continue intraday trading and seek for other profitable moves. While 5:1 being the most desired ratio, chasing and solely relying on this goal is not realistic. Intraday trading is never risk-free, there are just ways of minimising your exposure. Intraday traders make money through a variety of big and small gains, depending on the market reality. We’ve already established that intraday trading is not gambling, so pat yourself on the back for every winning trade you close.

6. Plan. Persist. Repeat.

To become a trader from home with no clear plan of action is a recipe for disaster. Successful intraday trading strategies involve having a trading plan and a backup plan. This way, you significantly reduce not only your potential losses but also the levels of stress when you need to make an immediate decision. A good intraday trader is the one who keeps a cool head no matter what. Approaches to earning money in intraday trading vary greatly, but the basics remain unchanged. 

Summary

How to become a good intraday trader? A question every aspiring trader has asked at least once with a desire to receive an immediate step-by-step answer. To become successful at anything in life, we all know to follow some basic rules and intraday trading is no different. If you ask different intraday traders how they make money, most likely you will get contrasting answers and tips, based on the techniques and tools they use. However, the golden intraday trading rules will never change and will always set traders and gamblers apart.

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