Trading Like a Pro

Preparing for your day-trade like a real professional

Plan and execute your strategies. The first step in day trading as if it were professional is to prepare. The first step is to prepare. This includes deciding on the right trading instrument, strategy, and entry point. Before entering any trade, a serious daytrader should first read the latest economic reports. It is essential to be aware of the dates and times that all important economic reports are released. The only traders who ignore economic data are those that lack care. To keep abreast of the economic scene, you can use Yahoo/Finance, Google/Finance or MSN/Money. You then have the option to choose between fundamental or technical analyses when you trade on this site.

As a day trader, you’ll be respected if you stick to London’s 3 am Eastern Time opening, which is 8 am London Time. New York opens at 9:30 Eastern Time (9:30 London Time) as well. Before you make any trades, wait for the bell. Eight parts make up the day.

First step after day trading preparation: 5% rule

Day trading is a risky business. Risk is inherent in all trading decisions. Protecting trading capital is essential. As a general rule, only use five percent of your trading account for managing money. Do not use more that five percent to fund 5 transactions. After you have reached $5, do not make any more trades.

trade like a professional

It is common for traders not only to trade in New York but also at London and Asian session. Not uncommonly, people who have trouble sleeping will trade continuously. It’s a classic case of excessive trading. All traders must pay their brokers commissions. To avoid excessive commissions, you should limit the number of trades that you make. Traders should ask themselves: Is it worth the risk? At least twice as much risk should be expected in return. Consider the risk/reward ratio before you trade.

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