Day trading is a very tough task. In a day trading strategy, the traders usually place the trade in the lower time frame so that they can close the trades within a few hours. But when you switch to the lower time frame data for doing the technical analysis, things become a little bit harder. It becomes nearly impossible for retail traders to deal with the dynamic losses of trading. So, how can we become a professional day trader and earn a significant amount of money? Read this article since we will give you some valuable advice which can improve your day trading method.
Selecting the trading instrument
As a day trader, you should be careful about the selection of the trading asset. If you trade with the low volatile currency pairs, it will be a tough task to earn a significant amount of money. The elite traders in Singapore always trade the volatile market so that they can secure big profits by utilizing market volatility. So, how can we find the volatile pairs in the market? To find the volatile pair, you need to know the high impact news schedule. Based on the news factors, you should look for the potential trade setup. But avoid trading the major news like the ECB press conference or FOMC meeting minutes. If you place a trade in such a market condition, you are going to lose most of the trades.
Use the best trading software
Being a day trader, you should always use the best trading software. High-end brokers like Saxo always care about their clients’ trading environment. If you are interested in premium software, feel free to try it out here. By choosing a high-end platform, you will be able to use the premium tools that will improve your trade accuracy to a great extent. However, you should never become too confident in your trading method. If you want to survive at trading, learn about the trading tools. Use them in the demo account so that you can find reliable trade setups at any market condition. You can find free demo trading software at TradeZero and similar online brokers.
Learn to trade the lower time frame
The day traders should learn to analyze the lower time frame. Analyzing the higher time frame is an easy task but it is mostly for position traders. To become a great day trader, you should think about multiple time frame analysis. While analyzing the different time frames, use the basic parameters so that you never make things overly complicated. But give priority to the higher time frame signals so that you don’t have to deal with false trading signals.
Find the major trend
The professional day traders always trade with the major trend. You should have a piece of strong knowledge about the different phases of the trend so that you can place the perfect trade with the trend. Placing your trade against the major trend is very risky in the investment business. To keep your funds safe, you should think about the safety of your capital. Trading with the trend in the lower time frame is the most efficient way to reduce the risk. However, you should learn to find the trend in the higher time frame since the lower time frame will give you data regarding the minor trends.
Learning to deal with the loses
If you want to survive in the trading business, you should learn to deal with the losses. The traders are always losing money since they don’t know how to manage the losses at trading. Being a beginner you should have the skills to deal with the losses in day trading. Day trading is nothing special and it’s more like using the traditional approach. So, if you don’t have the mentality to deal with the dynamic losses, it will be tough to make consistent profit from this market. So, focus on your risk factors, so that you don’t have to deal with big losses.