How To Day Trade Like A Wall Street Ninja

If you have ever dreamed of being able to day trade with the same skill and confidence as the guys on wall street then you have come to the right place. I am going to give you some great tips that are sure to help you become a better trader in no time. So, without further ado here they are:

1. Develop a trading plan.

As with any other business if you don't have a plan for your trading then your failure is pretty much guaranteed .If you trade without a plan then you will essentially be gambling on the market and that is no way to trade if you are serious about this business. A good trading plan will have defined rules that tell you: when to take a trade, how much to risk, and when to exit a trade. Without a trading plan there is no way that you will ever be successful, and you would be better off spending your money on lottery tickets, becasue at least then you will have a chance at making a profit.

2. Learn To Accept Losses.

One of the most difficult things for new traders to wrap their heads around is that losing is an inevitable part of being a trader. There is no such thing as a trader that never loses, and if you think you are going to trade without ever taking a loss, well then I have some magic beans I want to sell you. The truth is that losing is all a part of the game that you have to accept as a cost of doing business. This is one of the things that separate the elite traders from everyone else. Elite traders take a loss. shake it off, and keep it moving becasue they know that its inevitable, so instead of feeling bad and giving up they instead use it as a learning experience so that they wont make the same mistake twice, and this is exactly what you need to do.

3. Use Proper Money Management.

If you want to last in the trading business then you are going to have to learn to control your risk. It is imperative that you resist the urge to trade to maximize gains and instead you should trade to minimize losses. You must learn to treat your trading capital as if it is someone that you love. You wouldn’t risk a family member’s life would you? So then you shouldn’t risk your capital unnecessarily because without your capital your trading career is finished.Limit your maximum risk to between 2-3% per trade and even if you suffer a bad losing streak you will survive to trade another day.

4. Don’t Be Greedy

There are going to be times when you open a trade and the market immediately takes off in your direction giving you good profits. Now you are going to be tempted to let the trade run in an attempt to grab more profits from the market, but this is dangerous becasue at on moment the market can reverse and erase all of your gains and even leave you with a loss. In order to combat this you need to take profits when you have them instead of allowing your greed to cause you to hold on looking for more profits. If you feel like the trade can go further then close out half of your position, move your stop to break even, and let the other half run. Doing this stops you from taking a loss while also ensuring you will profit if the market continues to move in your direction, but best of all you will have already banked profits so no matter what happens you will come out a winner.

If you are serious about day trading then these tips are sure to help you become a better trader. Just take them and apply them to your trading consistently are you will be well on your way to becoming a elite trader.

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