Trade your plan and plan your tradeing. Planning is the key to day trading success. Tradeing involves the financial instruments and strategies for the best entry point, trade management, risk control, and money management. Any serious day trader will always check the economic news before entering a trade. When thinking about entering a trade, it’s important to know when and on what day important economic news will be released. Only careless traders ignore economic news. The economic news can be found at Yahoo/finance, Google/finance, and MSN/money.money. Based on fundamentals or technical analysis, you will decide what to trade. The opening bell of London is at 3 am eastern time, 8 am London time and the opening bell of New York is at 09.30 am eastern time, 14.30 London time. Before placing any trades, you should wait for the opening bell. Day trading follows eight steps.

First step after day tradeing preparation:

Risks associated with day tradeing should be recognized at an early stage. Any tradeing decision comes with some risk. Capital must always be protected when trading. You should only use 5% of your trading account for money management and risk management. You should not allocate more than five percent of your tradeing account to five trades. After you reach five cents, you cannot place any more trades.

Second step in day tradeing

Traders are very likely to tradeing during the London session, the New York session, and the Asian session. We often don’t get a good night’s sleep, and we trade without pause. Overtradeing is the major issue in this situation. Brokers receive commissions from traders for every trade. To avoid paying too much in commissions, you should limit the number of trades you make. In order to avoid taking trades just for the sake of being in a trade, traders should always ask themselves: Is this trade worthwhile? It should be more than twice as risky as it is rewarding. Risk-reward ratios should always be taken into account before starting any trade.

Third step in day tradeing

There is nothing like buying or selling at the right time in the right place. Conversely, when you sell or buy at the wrong time and place, you lose money. Tradeing like a pro will require the ability to make excellent decisions quickly and to understand the language of the price and the momentum indicators. Tradeing like a pro is like playing American football or rugby. One person buys, and another sells. Hence, one must adapt their strategies according to the situation. Range trading during low volatility periods and trendeing strategies during trendeing periods.

Step four in day tradeing

The use of indicators in day tradeing is one of the reasons why traders fail in day tradeing. They simply repeat the pattern of the price. But the price itself is different. The price itself is the most important indicator. A price can be understood by all traders, and it does not hide anything. In order to understand the price, traders should keep their eyes wide open.