When you take a trade and profit on that day, you are day trading. You are basically doing short-term trading whereby you are setting your risk and potential reward.
So, every trader would like to realize decent profits every time they open a trade. That said, in order to stay consistent you have to note down the following;
1. Stay away from Economic News
You will save yourself a lot of money by reading the economic calendar. Try to look at what is lined up for the day. This will help you plan your trading day. No one knows the outcome of any news release, therefore, it is important to stay out. If you have any open trades, it is prudent that you evaluate your exposure. I will not say it straight up that you have to liquidate/close your trade(s) but please evaluate your overall account exposure.
2. Remain Objective
Every business loses money. Your day trading business is not an exception. You have to guard your profits. One way you can do this is by conducting regular withdrawals. Some will prefer daily or weekly withdrawals. This is perfectly ok. A Day trader often profits intraday, therefore, be sure to push that withdrawal button daily or weekly.
3. Treat this as a Business
Trading, in general, is a serious affair. You have to dedicate a lot of screen time. It is a money making business, therefore, doing it for fun means you are already wealthy. If you can make more money elsewhere, then you would rather dedicate more time there.
4. Build Confidence
As the saying goes, Rome was never built in a day; bricks were being laid every hour. The same applies to day trading. Confidence is built and not bought. You have to trade profitably in order to improve your confidence. The markets are not for the faint-hearted as they say, but always remember the so-called forex ‘gurus, mentors’ were once novice and amateurs. It is purely hard work and persistence that got them to where they are today.
It is all in the mind. Day trading is very profitable if you follow some of my tips as discussed above. I believe most strategies can make money, but very few traders safeguard their profits. Being a scalper, most of my trades will last less than 3 minutes to about 30 minutes. Most of my students will acknowledge that order flow day trading requires split-second decisions. However, we trade what we see and not what we think. I will share more in coming days.
Happy Trading, stay safe and be very happy always!