More than 80% of the day traders than enter the market are literally left stranded within the first few months. There are some who advocate that day trading is a really stupid idea, especially when it comes to the Forex market and their harsh judgement is based on the fact that it is extremely difficult to catch the small nuances in price movements on a daily basis in the hope of accumulating profit and making money.
They feel that the risks are too great, the work is too much and the returns are too little for day trading to be worth it. While it is true that day trading is an arena only for extremely seasoned investors, if you are contemplating it , there are some things you need to know about. Making the decision to start on a course of day trading should not be one that should be taken lightly, and there are many things to consider before embarking on it. First, you have to find out whether or not day trading is suitable for you in the first place and this means you need to do your research and familiarise yourself on the methodologies.
Anyone who has been on the day trade will tell you that you will lose money before you start to make some, so ask yourself if you have the necessary capital to risk. You must understand that once you make this commitment, it will be a full time one that will suck your social life dry. So find out whether or not you can make the sacrifices necessary. Another thing, you need to be cool and calculated when on the day trade, and this means you need to have full control of your emotions if you have any hope of succeeding in manipulating a market that is volatile and ruled by a flighty market psychology. Fear is something you need to avoid, and that is followed quite closely by greed, so be careful when trading.
Be prudent and think things through before making decisions. Once you have those things in check, you need to develop a solid trading plan that will push you through even the most difficult circumstance. A good trading plan will be help you to determine just what kind of trader you are and how you should approach the market. Once you have the plan, stick to it unless it has some major flaws which need to be looked over. Another thing, make sure you have a solid foundation on the type of strategies you are going to use to attach the market. New traders will start with basic ones like the Bull Trap trading strategy, which plays on market momentum and requires some fast decision skills. But it is a simple strategy and there are many like them to help you out. Last but not least, you need to have a grounded money management plan before you start trading. With these 5 things in mind, you will have better footing in making the day trade work for you.