Your success will be decided by a variety of things, as a day trader. A few of those factors which decide your degree of success involve: your patience, your know-how of the economic and financial markets, your character as a trader, as well as a comprehension of the numerous analysis tools. Unless you possess an excellent familiarity of all of these, odds are you are going to wind up losing all of your funds.
I understand your primary objective of going into the market as a day trader includes making money. But, the money will not be earned if you continually use the incorrect strategies. Within this post, I am going to highlight the main information about time as well as why it is going to matter for you as a day trader. Your trading window is hours if not minutes as a day trader. Because of this, you should close and open trades inside a matter of minutes or hours for a profit. Conversely, swing traders should open trades which are going to stay open for one or two days. Investors (long-term traders) should open trades which are going to last for at least a couple of months.
Lot size or volume
The lot sizes and volume used per trade is going to play an extremely critical part as a day trader. They’ll decide whether you’ll lose or make money. Basically, the lot size includes the size of the trade. A lot size ranges from zero to any figure. The amount of lot size utilized ought to depend upon the quantity of funds you have inside your trading account, as well as your time window. For example, if you own an account that has $100,000, you may be comfortable in using a ten lot size. It’s merely because you’re going to have a bigger safety margin. But, if you own a mini or micro account, you ought to limit your lot size used to 3. It’ll assist you in absorbing losses as you limit your margin call. Personally, I have a rule I use that I will never utilize a lot size that is bigger than two. Usually, with this type of volume, I have peace while trading.
As explained previously, there will include a variety of asset classes that you may use to earn money in high frequency trading. Those asset classes include: commodities (like oil and gold), equities (like Google and Apple), indices (like Dow and NASDAQ), currencies (like USD/EUR), as well as bonds (like treasury bills) amongst other ones. Every one of those asset classes are going to require an entirely different analysis view while trading. For example, if you’re utilizing a leverage of 1:100 as well as you have a desire to buy EURUSD as well as are trading using $10000 the loss or profit is going to be different as compared with when you’re buying oil. Keep in mind that EURUSD trades currently at 1.0867, whereby crude currently trades at $29.34/barrel. Therefore, you ought to have those in mind in order to avoid making irregular losses, in multi-time analysis.
Financial or economic data
As there are a multitude of elements which move market down and up, the truth is that financial and economic data include the main movers. Economic data will refer to numbers that concern the wider economy. They’ll involve: GDP, inflation, and jobs amongst others. Financial data, conversely, involve numbers like earnings for certain businesses. It is advised that you always avoid trading half-an-hour minutes after or before the releasing of economic data, as a day trader. It’ll assist you in avoiding being in the middle of volatility. Traders may use those numbers in order to allocate their funds, for financial data. Pay close attention if a company like Intel is reporting, for example. That company offers chips to businesses like HP and Microsoft. If Intel’s revenues decline, odds are great that hardware businesses also will disappoint. In turn, this will open a trading opportunity in order to short.
Close and open times of the market
Now, people are trading worldwide, with the Internet. The benefit of this is that long-term traders will react to the 3 primary market areas: Europe, America and Asia. It’s highly crucial that you understand the various times which those markets open in multi-time analysis. It’s due to the asset classes moving in various directions within such times.
You might also like: