You need to learn a lot to become better at something. As a new trader, you must educate yourself properly to learn the details of this market. Most of the rookie traders don’t want to work hard at the initial stage. They consider the size of their trading account as the most important element to make a profit. But the size of your trading account has nothing to do with your success. In fact, it’s better to start trading with small account since the majority of the rookie trader blows up the trading account. In order to become a professional day trader, you need to follow some basic tips. These are:
- Be prepared to learn
- Learn to trade in a demo account
- Find a reliable broker
- Trade with managed risk
Be prepared to learn
Most of the retail traders don’t have any special desire to learn new things. In fact, they start to trade with big risk after learning a few technical details of the market. You need to understand there are three major forms of market analysis and technical analysis is just part. Try to learn fundamental and sentimental analysis since it will help you to make a better decision at the complex market. It’s true, that you can easily make a huge profit by using a high leverage trading account but for that, you need to have some basic skills. Learn more about the associated risk factors in the trading business and try to come up with a stable trading strategy.
Learn to trade with a demo account
No one should start to trade the market unless they can make a consistent profit in the demo account. Dealing with the options trading industry is really hard. Even after having a perfect trading strategy, you will often have to lose trades. For this reason, all the successful traders always suggest trading in the demo account. There is nothing wrong about while trying to learn about the trading industry at the initial stage. Stop considering yourself as a day trader unless you can make consistent profit for six consecutive months.
Find a reliable broker
If you work hard, within a few months, you will have your trading strategy. Once you feel confident with your demo trading performance, it’s time to find a reliable broker. New traders start to trade the market with the low-end broker and thus they lose their investment. You need to find a reliable broker like Saxo to get free access to premium tools. Think about the professional trading platform. You can easily advance market analysis and use smart tools to maximize your profit factors. You need to do some proper research about the broker which intend to trade with. If necessary, seek help from trained professionals to find the best broker for your trading career.
Trade with managed risk
Even after having all the skills and a balanced trading strategy, very few traders can actually make a consistent profit. As a new trader, you need to understand the importance of a risk management policy. Never execute any trade without knowing the risk factors. You might be convinced by a certain trade setup but still, you should never risk more than 2% of your account balance. Try to follow the safest path in the trading business. Once you start to trade this market with the managed risk you will see a dramatic improvement in your trading career. But even after following the basic rules, you will often face a series of losing trades. This doesn’t mean you have a bad trading strategy. Just stick to the rules and try to find high-risk reward trade setups in favor of the long term market trend. Stop trading the lower time frame data as it increases the risk to a great extent.
Becoming a profitable trader is really easy. Just follow these tips and develop a strong habit of reading. Always keep yourself updated with the latest market news so that you can keep pace with the dynamic changes in this market.