Intraday Trading Tips For Beginner Traders

1)  Create a written intraday trading plan.  – Without out it you’re cannon fodder for more experienced intraday traders.  You need to know exactly what it is you’re going to do before the trading session starts, each and every day. Whether you plan to day trade stocks, emini futures, commodities, or anything else, it doesn’t matter.  For example, if the plan is to trade momentum or breakout stocks, you will certainly need to know exactly how you will scan for or locate those stocks to trade.  How will you enter trades? Market orders, limit orders, buy-stops?  How will you exit trades?  Will you use price targets, trailing stops or some other exit strategy?  Will your trading plan primarily use price indicators/oscillators or will you use pure price action to initiate your trade entries and exits?  You will need to know answers to all of these questions prior to trading with real money and really even before to practice on a trading simulator.  Which brings me to my next intraday trading tip.

2)  Start with a trading simulator first.  – Don’t even think about day trading with real money until you have become consistently profitable on a high quality trading simulator first.  What’s the point in rushing things by opening up a day trading account and immediately starting to trade with real money?  That’s what fools do.  Keep your trading capital safe, by trading with sim dollars until you have good, consistent results from the simulator and enough confidence in your trading plan to execute trades without fear of inevitable loosing streaks.

3)  Start with an adequate account size  – For day trading stocks, due to the SEC’s pattern day trader rule, most brokers will require a minimum of $30,000 to open a day trading account.  But, you should expect a draw down in your account, since you will be just starting out and most likely will be making mistakes.  So, in reality you really should consider starting with a minimum of at least $40,000. This…

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