It’s no coincidence that 95% of intra-day traders never make it. After all, if it was easy, everyone would be doing it. And while there’s no sure-fire recipe for success, there are a few principles that can help you avoid falling victim to many of the pitfalls that plague would-be day traders.
-
Set yourself clear goals for every trade : as a day trader, you want to be in and out. You can’t let greed or fear hold you back from closing a position. When the time limit you set yourself expires, take whatever paper profit or loss you have and don’t look back. It’s incredible how much money people lose trying to chase their losses or maximise returns.
-
Use stop loss orders : these are an excellent way to take the emotion out of day trading. Set yourself a stop loss when you open your position to ensure you don’t lose more money than you can afford. That way, the app will automatically liquidate your position when this limit is reached, removing the risk of you feeling compelled to hold on for a reversal that never comes.
-
Use take profit/limit orders : like stop losses, these help you maintain a healthy level of stoicism. If you set a take profit order to sell your coins as soon as your target return (1-2%) is realised, it will prevent you from holding on in hope of bigger gains. More often than not, the trend reverses before you can react and you go from a nice 2% return to a -1% loss in the blink of an eye.
I raely appreciate your effort