How To Be a Successful Forex DayTrader (DayTrading)

How to become a successful day trader? If it's forex, stocks, or any other financial market, what does it mean to be a day trader? What does it take to become a day trader? And what does it take to become a successful day trader? That's exactly what I want to explain in this video. Ready? Let's begin. So before we talk about all the real steps you need to do to become a successful forex trader, let's first of all start to understand what is a day trader. Because most traders, they jump into the deep water without really understanding how deep it is, not always even knowing how to swim. And you understand that this is a mistake. Well, sometimes even bad mistake. So before you do anything, any sort of trading, any sort of investment, any sort of activity in the financial market, you better understand where you enter. You better understand what to expect, what to anticipate, okay? What will happen and how, so you would have better ways and better tools in your arsenal how to react. To what's about to happen and to come. So first of all, what is day trading? So by definition, uh, and already because there are different definitions by different organizations, but okay, here's the first one. The day trading is the buying and selling of securities on the same day, often online, on the basis of small short-term price fluctuations. Okay, same day, hear me out, same day. That means you spot your opportunity, you have this opportunity, and you are out of your opportunity at the same day. Okay, uh, FINRA rules define a day trade as a purchase and sale or the sell and purchase activity of the same security on the same day in the margin account. Okay, this definition encompasses any security including options. So again, different organizations might define it differently, but the bottom line is A very short-term activity, which means buy and sell or sell and buy the same assets, the same security at the same day. Okay, now before we move on, are you capable of doing it? What do I mean by that? Without any sort of hesitation, theoretically speaking, everyone can do that. But realistically speaking, can you? What does It takes— you have to understand that day trading is an absolute full job. It does not mean 9 to 5, or it doesn't mean 1 to 11, but it's a day job, which means you need to be able to dedicate hours in order to make it effective, correct, with high probability to turn To be profitable. For those of you who know poker game, for example, many step in trying without understanding all the hours and hours you need to put into it, sitting at the table. When you enter the game, it's— you can play cash game and 10 minutes and you are out. But if you don't have the patience to sit and to play and to wait for your hands and to value your probabilities during your game, then— You're not gonna win. You are wasting your time. Day trading is no different, okay? And it's the same in any other thing in life. Whatever you decide to do, you have to put the time, the efforts, the patience, the discipline to make sure these things done. Day trading is absolutely not different, maybe even on a higher level of dedication And effort, okay? Because you need to be there when the market moves. If you are not there, the market will move without you. And what's the point then of being a day trader? So you have to understand that day trading takes hours, okay? And whoever sells you this dream of all you need is 5 minutes at 8 AM or 9 AM or 10 AM or 1 PM at the beginning of whatever the session is, He's selling you nothing but a dream. You understand that if something would work every day at specific time, that everyone would be already a Warren Buffett or other billionaires, maybe even something more. So all these, you know, empty promises on the social media, 5 minutes a day, 10 minutes a day, 30 minutes a day at a specific time, it's, it's great as a promise, but it's very far from reality. There could be days it will work and deliver, but Okay, so day trading again comes with efforts, time, dedication, and be there when things happen. Will that guarantee you that you will finish your day with a profit? Well, when you go to do your other job, is there any guarantee that whatever the task you do would be done at a very specific day on the best way? No, there will be some. not so successful days, sometimes maybe even a streak of them. It's absolutely normal. Day trading is no different. You have to understand, once you step in, there is a great chance you would end up profitable, but there is a chance you will end up losing. And you must understand and accept that before you step in. Because many traders, especially the beginners, what they do is they hear some promises online If you do day trading, you will end up 50 pips, 100 pips, 200 pips, 300 pips a day. Come on. I mean, it sounds promising. It's tempting. But the reality is, what will you do if the market will not move? Or what will you do if there will be some events happening not like you would imagine or would wish? You would have to accept losses. You would have to be able to cut losses. And mainly, you will have to live peacefully with it because losses in any sort of trading activity or investments are part of this activity. When you do sports, injuries are part of sports. When you are doing martial arts, getting punched or kicked is part of that. So be ready to get kicked and punched by the market sometimes in order to be able to deal with it later on. It all starts with understanding it Mainly accepting it. So after all this intro and understanding what day trading is by definition, let's talk a little bit about the advantages and disadvantages of being a day trader. If it's all that good, why not everyone is a day trader? And if it's bad, then maybe you are wasting your time to become a day trader. So you understand you will need to put the hours and the efforts, and some days would not be as successful as you would wish and don't believe to other stories you might hear online that you would never have losses. It's absolute lie. So what are the pros and cons of day trading? So let's start with the pros, of course. So the main one, maybe you would be able to seize numerous opportunities in a volatile market. Okay, you will be able to spot in volatile days, of course, in quiet days, it will be boring days and some days will be like that. You will spend hours To find nothing or find something promising that will not go as you wish and you would have to cut it out. So the first advantage is in good volatile days and healthy market conditions, you would be able to spot numerous trading opportunities. That's great advantage of day trading. The other huge advantage, at least from my point of view, sleep hours. You would finish your day as day trading is a job. You would finish your day and you will forget about trading until tomorrow. You would sleep like a baby. Well, unless there is something other bothers you. I know a lot of traders, including myself, to be absolutely honest. When I am in long-term swing trading and I am exposed in the market, well, not always reacting as I would wish at the right moment, and I'm carrying some exposure, then sometimes I am losing sleep. And everyone is, because when your mind is set to think about, hmm, what does my invest do at that very moment? Sometimes you find yourself waking up to check what's going on, especially on volatile markets. Again, when things happen— when things don't happen, the market is quiet, you still sleep like a baby. So day trading is huge advantage here. It's you will be able to complete your trading during the day, leave it. Never bring work to home, you know this saying, right? That's actually what you'll be doing, right? You start your day, you put your hours, day is done, profits or not, that's it. I'll see you tomorrow. Okay, that's a great advantage from my point of view. Another very big advantage is the excitement because swing trading and investments and long-term trading could be so boring in Okay, so to be very honest and transparent, and for those of you who follow me for a while know that I love— and majority of my trading activity is not day trading. I love to ride my trades many times carry-on. I love it. It allows me not to be glued to the chairs too much and do my other things in life, other responsibilities in life, and live my life without being glued to the charts. But it's not exciting. It's boring in times. How boring? Extremely boring. When the market does nothing, you get nothing. Imagine you buy a security at 1.10 and after some time it's still 1.10 or 1.1020, for example. So all this time you just earned 20 points. You can't make a living out of that. Okay, so in times it could be so boring. Not just boring, but also like Bring up questions. Am I doing the right thing? Did I just spend a week or a month waiting for something to happen which doesn't happen and I need to cut out? Imagine how does it feel. So day trading really keeps it exciting. Excitement could be, of course, on both sides, positive and negative, of course. But the excitement is there. You start your day, you know what is coming, what to expect. You know your day targets, you know your risk. You are there. Things happen. Okay, so from my point of view, that's a serious advantage. Now let's talk about the disadvantages, because every medal has 2 sides. So does that. Let's talk about disadvantages of day trading. But before I continue, I would like to ask your help and your support. If you find value in these videos and other videos I upload for you in the channel, please hit this like button. Few words in the comment section would be a great help to this channel, to me and my team, and all the work we put here. And you know, this is how all the algorithm behind YouTube works, so your help is very much needed and appreciated. Thank you very much in advance. Of course, if you are new to our channel, then first of all, welcome to our fantastic community. Please consider to subscribe to this channel with the subscribe button below this video. Okay, just remember, enable this notification with the ring bell there so you know when there is new content available for you. So back to the disadvantages, the first and probably the main one, you need to dedicate a lot of time. Let's talk about it in reality. If you dedicate only 1 hour, nobody, and I repeat, nobody can guarantee you that the market will do a move at that specific hour. It doesn't matter if it's a session opening, session close, or cross between the sessions. It does not matter. The market doesn't care what you want. The market doesn't care what hours you can dedicate to that. The market will do what the market has to do. It's your responsibility as a trader to, you know, adjust yourself to the market and not to expect the market to do what you want it to do. Okay, at the moment you understand that, that's the moment you would be able to step to the next level. So the disadvantages, it takes time, more than the promises you can find online, like 5 minutes a day trading, 30 minutes a day trading, etc., etc. If it was true, we all would not be day trading. We would be already Warren Buffett or anything like that, and, you know, enjoying ourselves somewhere in Dubai, the Caribbean, or Mykonos, or anywhere else. You choose, okay? So time is what you will have to put here because if you don't want or if you are not willing to put the time and the efforts to do proper day trading, then do yourself a favor and save time. Like in any other thing, unless you are ready to put the time, if it's gym, if it's college, if it's whatever you choose to be successful at, If you are not ready and not willing to put the time and the efforts into that, save the time. It's not going to work. And please stop believing empty promises you will find online. The next disadvantage is that sometimes you would have to make small incremental profits. What does that mean? Again, you start a trade, you find the opportunity, you anticipate the market to make the certain move from point A to point B, but the market does not deliver. Again, the market doesn't care what you want, what I want, or what anyone else among the traders want. The market will do what the market has to do. Period. Fact. Bottom line. With that being said, sometimes you would have to realize smaller profit that you initially expected, anticipated, wanted, or needed. Okay? And here comes a very interesting and important thing to understand. If you would start saying, hey, you know what, maybe I'll just let the trade run, and you immediately cross the border from day trading to maybe potentially swing trading because you don't know how long it will take. And by that, you change the rules of day trading. It could work well for you, but it also could harm you, and it could lead to the next disadvantage which I want to talk about. Yes, there is always a possibility to wipe out small wins with one big loss. Because at the moment you do this switch and you say, maybe I'll just give it a chance, let's see how that could run. Maybe tomorrow it will be better. But, and then you go to bed and you wake up and like, oh, what's going on? The market goes absolutely different direction and you forgot to protect it. You will find yourself in a Very deep hole, a hole you don't want to be at. And as every hole, you know, if you want to get out of the hole, the first rule is to stop digging inside. So you would have to realize painful loss. Nothing wrong with that. We all been there. We all did that. But smart traders would prevent it, would avoid such thing. And it starts by realizing acknowledging and accepting these little facts. Okay, it all starts with understanding. So these were the advantages and disadvantages of day trading. Now let's talk about the bottom line. So what do you really need to become a successful day trader? So the very, very first things will be, like again with anything else, is understand where do you step in. Understand the markets and understand the securities. What are you going to trade? Is it stock market? Then how does it behave? What are the securities required? What is the risk required, etc., etc.? Is it forex market? What are the best hours? What are the active hours? What are the average moves during the day? What are the relevant instruments to trade for specific times? Etc., etc. All that is very much needed and absolutely crucial if you plan to do day trading and you have your goals to make a successful day trading. You would need to arrange sufficient capital because without capital there will be no gain. If you have to understand that if you do day trading with $200 or $500 Or $1,000. And please don't get me wrong, there is absolutely nothing wrong with these amounts. For some people, that's a lot of money. But the problem begins that these very people start to have some unrealistic, in times ridiculous expectations. Oh, okay, so I'll put some $500 in order to make $100 a day. Come on, again, if it would be that simple, Don't you think everyone would be already a multi-millionaire or maybe even more? It's not that simple. There are no guarantees, and unrealistic goals and expectations bring usually to bad results. That's why you almost never hear such stories unless it's some, you know, I don't know, fake Instagram account or whatsoever. You never heard these stories in reality. When was the last time you actually saw a friend, a colleague, someone you know from family who actually did that? Very, very rare, if at all. So you need to understand that money goes to money, right? If you don't have that, no problem, start small. But you have to understand that if you start small, you cannot expect big right away. And from $500, expect $100 every single day, or worse, $500 every single week. You are talking unrealistic numbers. It could work a week, 2 months, a quarter, a year, but at some point it will stop. You will start, uh, you— some acts of overconfidence. The market will revenge. There is always something. So do yourself a favor and set realistic goals. realistic goals since the very beginning. Trading strategy, that's the next thing you must have in order to do successful day trading. And not just day trading, any trading, but day trading specifically. Strategy is a set of rules. What does have to happen on the chart in order for you to enter a trade and exit a trade? Clean set of rules for actions. If you do not have them, There is absolutely no way you would be able to do it successfully. If you just shoot lucky calls, oh, this feels like a buy. Oh, that guy said a buy. Oh, this looks like a sell. Oh, I heard them. I heard this guy is selling, or I saw some tweet selling. Unless you follow specific, clean, clear, strict set of rules to enter and exit trades, you would never be able make day trading successful. So start with that. A strategy that works for you, that proves to be efficient for you, and where you understand its logic and how to deal with them. Trying to do a strategy of someone else without understanding it will lead to usually bad results. The next thing is you must, absolutely must, have clear trading plan, management plan, and integrate your strategy and plan. Again, clean set of rules that will take you in a trade and will take you out of the trade when specific things happen. Okay, the management must be absolutely strict set of rules. You cannot compromise that. You cannot let that be the last thing in your importance list. It's, it's, it's absolutely impossible. You, like in every business, you must know what comes in, you must know what goes out, you must know your supply, demand, and the flow. And day trading is not different. So the strategy and the plan must be synchronized and backed up by clean set of rules and the ones that you can execute on perfection. And the last important thing is improvement. Learn, learn, learn, improve. There will be mistakes. Deal with the mistakes. A lot of traders will tell you avoid emotions. You cannot avoid emotions. You're a human being. There will be emotions. You have to learn to deal with these emotions. You have to understand what triggers your anger, what triggers your misbehaving, what triggers this very thing in you that cause you to do mistakes. Okay, you must, absolutely must learn to deal with these emotions and practice everything. The set of rules, always polish that. The management, always polish that. Always aim to improve. Nobody ever will be perfect, never. So all you can do is keep pushing, keep working, keep improving, keep polishing, and get better and better and better, and mainly consistent and stable. And the very last advice I want to give you Start small. You cannot go to gym and lift 200 pounds bench press or squats before you— when it's actually your first time or your first month or your first 2 months and you never lifted before. You simply cannot go on the last level of a ladder before you go level 1, 2, 3, 4, 5. It simply doesn't work this way. Start small and climb. If you jump all the way up without the strong fundamental that will hold you, you will find yourself going down pretty much faster than you went up. So start small and climb, and not the vice versa. Very important thing which I hope you understand. So that's it for this video. Thank you very much for watching that. I hope you find value in it, and if you have any questions, don't hesitate to ask in the comment section below this video. I also would like to invite you to join us in Home Trader Club where you will get your access to our absolutely full comprehensive trading courses for beginners and advanced, where you will enjoy our real-time trading opportunities and real-time trading education, access to me, my team, and our community, and so much more. Join us with the link below this video in the description. I wish you and yours the very best. Thank you for your time watching this video, and I'll see you soon with more. Bye for now.