Day trading futures attracts many types of people who have one thing in common: they want to be successful at day trading.
When the drive for success is strong and armed with a winning trading strategy, why do so many fail?
What is the difference between successful and unsuccessful traders?
There is no one answer, but there are a number of elements to working as a trader including:
- Emotions : Failure to learn to control emotions when faced with losses, gains, luck and doubts, which leads to poor decision making.
- Timing : Market timing is a factor that you must master to become a successful trader. This is where the majority of traders fall by the wayside.
- Capital : Under capitalization or external pressure to make money. In this situation or not, traders will often feel that the market has to generate ‘regular’ and ‘consistent’ profits for them or they will enter into financial ties. This introduces the problem of trading psychology and makes traders fail.
- Looking for a Gold System : Failure to stick to one trading system. Most traders usually take some losses and then they start trying to change something, change things, and eventually find something else. They jump from one system to the next without ever really learning the rules and system methodology. They think they can find a trading system without fail right away, before they give their day trading system a real try. The problem is that there is no “no fail” trading system and unless you really study one you will never find success.
Now, how much of this has wreaked havoc on your trading? Personally, I may be guilty of making all of these mistakes at one point or another.
So, let’s focus on how we can take an advantageous futures day trading strategy, avoid these problems, and create plans and strategies to help develop into successful traders.
Win On The Day Trading Handbook
You may have heard of this before, but it may sink in this time. Go ahead, tell yourself “this time I will apply what I have heard and learned.”
Why do you read the same thing so often again? Because there is no magic secret to winning in futures trading. Nothing hides a pot of gold from you.
Let’s get started.
Market For Day Trade
First, choose a market that you like or what is known as www.wid88.com . Keep in mind that it has to match your trading style. You need to make sure you have enough capital to trade in that market too.
If you have a $ 5,000 account, you don’t want to start trading on ES or Crude oil futures because of the risk above 2% per trade on that account size. NQ or Dow carries less risk per point, so you and your trading account can handle some of the losses without putting you on an emotional roller coaster.
Your Trading Plan
Now that you have chosen a market, you have to make a plan. If you don’t want to plan from scratch, there are several resources through NetPicks to help you out. All of our day trading systems come with complete trading plans so most of the hard work is done for you.
You will need to test this trading plan yourself, but some work can be eliminated if you choose to go with something you know works for someone else. It’s best to support the plan for at least 6 months.
Retests, while imperfect, will give you the anticipated results, so you know what to expect when you start trading. It is important to know how many consecutive wins and losses the market usually gives you, so that you can be mentally and emotionally prepared to trade them.
Learn to Manage Your Day Trading Position
Learn how to manage your trading on the platform you will trade live on. This way you can make some adjustments, such as perfecting your trailing stop.
Remember, trade your plans, and don’t deviate from them. If you can make 25 trades in a row without mistakes then you may be ready to trade live.
Live Trading – Test Your Trading Preparation
Finally, it’s time to trade on the live market. This will give you a market feel. You will see how fast it moves and how to respond to news.
You will make mistakes, but don’t let them stop you.
Using a trading journal after each trade, you can view the results and emotions as you trade.
Did you skip a trade because you didn’t feel comfortable with it or that you expected the market to go another way? You can skip trades if you fall into the filter parameters in your trading plan, but if that you don’t know is moving forward, then that is a problem you should solve.
If you make too many mistakes, then stop trading and re-evaluate your mistakes and why.
Quick Details of Becoming a Successful Day Trader
After reading the steps you can take to become successful in day trading, the following version of the points form might be something you should write about:
- Make a plan, retest the market and then practice until you have it.
- Use the plan and retest the data to help control your emotions and your soul. If you know what to expect from your tests, real trading will be easy and much less emotional.
- Keep your risks low and don’t use too much margin. This will keep you in the game. You will be able to take the next trade after a few losses to come back positive or at least close to it.
- Test the system and know the winning percentage. Prove to yourself that it works before risking a dime.
It’s not easy, but the steps are simple. You have to commit while doing it, maybe one day a successful day trader might be what you call yourself.