Intraday Trade Tips for Beginner Traders

1) Create a written intraday trade plan. – Without it you cannon for more experienced intraday players. You need to know exactly what you will do before the session starts, every day. Whether you are planning stock trading days, emini futures, commodities, or anything, no problem. For example, if the plan is to trade momentum or breakout stock, you certainly need to know exactly how you will scan or find the stock to trade. How will you enter trade? Market order, order limit, buy-stop? How will you get out of trade? Will you use the price target, trailing stops or other outgoing strategies? Will your trade plan mainly use the price / oscillator indicator or will you use pure price action to start your trade entry and exit? You need to know the answer to all these questions before trading with real money and really even before practicing on the trade simulator. Which took me to the next intraday trade end.

2) Start with a trading simulator first. – Don’t even think about trading day with real money until you become consistently beneficial on high-quality trade simulators first. What’s the point in a hurry by opening a trading account of the day and immediately start trading with real money? That’s what fools do. Keep your trading capital security, by trading with Dollar SIM until you have good and consistent results of simulators and sufficient trust in your trade plan to execute trade without a discretable scratch loss.

3) Start with adequate account size – for daily trading stock, because of the Rules of the SEC day merchant merchant, most of the brokers will require a minimum of $ 30,000 to open a daily trading account. However, you should expect a withdrawal in your account, because you will only start and most likely it will make a mistake. So, in fact you really have to consider starting with at least $ 40,000. This must be the money you or your family do not need to pay for living costs.

4) Stop orders must be used in every trade – no exception. This might be the most important tip that I can give to you. Unless your trading plan includes several types of counter-trend trading or couples that allow many entries at different price levels if the price moves against your position, you must always stop. If not, what will happen is the trade you want to do only be an intraday trade will soon turn into investment and you will be without some trade capital.

5) Understanding and using position size – One mistake made by many novices is to put all their trade capital and often use margins, only in one trade, stock or strategy. Using the most basic position size techniques only requires you to divide your account into a few blocks of money to buy or stock individual short or use split capital to trade different strategies. Trade with too many shares in one stock or strategy to open you up to too much risk of losing lines.

Intraday trafficking requires more knowing more that what I have served here, but these five tips are very important for a beginner to find out before trying to make money in the waters of sharks on the market today. I want to leave you with a trading advice last day, don’t profit too fast. Another big mistake by beginners, thinking that it’s okay to take profits, no matter how small, as long as it gets profit. Wrong! Many, if not most traders make money with a strategy or trading system that has a Win% of 50% or less. Therefore, your average winning trade must be much greater than your average trade to make the overall profit. It’s just possible if you are patient enough to let the trade exercise. That’s where rider stops and / or the target price is in, but it is a different discussion for other articles.

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