What are some tips for becoming a successful day trader?

"To increase the profitability of a trade, try and look for multiple confirmation signals"

7 tips for becoming a successful day trader:-

1. Clear strategy - Having a trading strategy with clear entry/exit criteria plays a huge factor in trading profitability. Regularly reassess and refine this strategy in response to market shifts and performance.

2. Risk management - Use a predetermined position size for each trade and incorporate stop loss orders to align with your risk tolerance. Having proper risk management will protect your money from unnecessary loss.

3. Predefined exit - Establishing specific profit targets and stop loss levels before initiating a trade helps avoid emotional decision-making and increases the likelihood of actually taking profit when the price hits.

4. Multiple confirmations - To increase the profitability of a trade, try and look for multiple confirmation signals. this will also increase confidence in the entry.

5. Patience - Having the patience to wait for price to fulfill the criteria of a pre-established trading strategy is hard at first but it is essential and will make you an all-around better trader. Avoid impulsive actions and enter trades only when criteria are met.

6. Discipline - Have the discipline to abide by your predetermined targets to avoid getting too greedy and giving back all the profit to the market.

7. Emotional control - Being able to gauge your emotional state before making trading decisions will put you up there with the trading elites. If emotions are heightened, step back to ensure rational choices are being made.

Credit: Quora

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