A good new forex trader that have to share that they prefer day or scaling when trading currencies and putting quick and multiple trades a day get to increase the chance of winning trades.
Doing trading for short period gives you time for doing other activities like social life, sport and so on. But if you think that more trading gets more profit then you are wrong. Taking more trades don’t necessarily translate to more profit.
In trading, you can’t draw you target. You get it whenever the target is hit and spending time in the short-term trading chart also don’t means that you give less time for pre-trading preparation.
But still, short-term trading gives you profit. The key of day trading is learning the strength and weaknesses and according to that, you adjust your expectation and strategies.
If you believe that trading or scalping is for you, then here are some points you should consider:
Small trader thinks they make more money from few amounts spending but they don’t remember that leverage is a double-edged sword and the reason for failure is not they suck, but they are undercapitalized and don’t understand the how actual leverage work. So read more about leverage and margin and see its result in trading performance. you can sustain the cost involved in taking multiple trades in a day.
For the trader, trading is a business and transaction cost is the cost of doing business. In this include, all taxes, commission and broker spread. for all this matter, talk to your broker about their commission/spread terms so that you won’t be blinded at the time of getting your net profit/losses.
What’s important for swing and position traders may not be important for short-term traders. Ditch your long-term trends and market themes for shorter-term volatility movers. Know what makes major players tick in your chosen time frame and time of the day.
Day trading/scalping plan
When you identify that factor that moves currencies in the shorter time frame, at that time you will work on making best strategies work for you. Practice taking short-term trades and build a system that fits your trading personality.
Trading behaviour issues
As the point of trading psychology issues, then the short-term trader get more pressure as comparisons of the long-term trader. They handle the pressure of quickly pricing in information, placing the order and trading large position that increases the possibility of making trading mistakes. Always make sure your trading discipline and risk management strategies are solid on the real money on day trades.
Forex trader always fails because of their expectation of making lots of easy money. the lack of knowledge of leverage works and the urgency to earn money is a dangerous mix that often leads to blown account.
Always remember that trading is a business and becoming continue profit it takes time, effort and patience. When you acknowledge these, then you’ll have a better chance of surviving trade for another day.