Day Trading Is Not A Child’s Game, But A Few Rules Can Set It Right For You

Besides the knowledge gained from day traders training, a trader should keep a few rules in his mind while trading. These simple rules can make a big difference in their trading experience.

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  1. Know the escape price: It’s essential for the trader to know the price at which he should start a trade and when to exit with a profit. However, it is even more essential to know the escape price, if the loss is imminent what should be the right price to escape with minimal losses.
  2. Margin should be avoided: While margin provided by the brokerage can prove a boon for the seasoned traders, for novice traders it is a shortcut to increase your losses, hence avoid it at all costs.
  3. Know when to sell: The trader must set a goal price and a targeted time beforehand to sell their stocks accordingly and stick to it firmly. In the beginning you may think that you are limiting yourself by doing so, but remember you’re also minimizing chanced of loss. Once you’ve enough experience you may set limits higher.
  4. Have patience: It is important to avoid trading right when the market opens. First fifteen minutes are usually panic trades or prior night orders. You must wait for the right opportunities and take it for better reward, than making hasty and wrong decisions.
  5. Maintain accounts of all your trades: Not only it would help you analyze yourself better, but also let you learn from your mistakes.
  6. Make use of demo accounts: Many day traders training programs comes equipped with demo accounts to help you practice and hone your skills. Use them.
  7. Avoid following unreliable sources: If you’re not sure where you’re getting the information from, avoid it. Rumors and half-truths can hurt you real bad.
  8. Learn to lose before you can win: Neither day trader training nor an expert’s opinion can guarantee success at your first attempt or first few attempts. Remember to have patience and be prepared to lose a bit of money before you’re seasoned enough to turn your failures to success.