Tip #1: Do not over trade. The market is a random walk most of the time, meaning that it's moving around without a pattern that can forecasted. Retail traders taking small positions in the market cause this meaningless movement.



These retail traders don't affect the long-term moves of the market. It's the pros, with their large volume and their willingness to hold positions longer, who create sustainable moves in the market that can result in significant profits.

Many people are drawn to day trading because of the excitement of the business and the potential for big, fast profits. This attitude sets up the trader for failure. Day trading does not have the frantic energy of a video game. Most successful day traders sit by the sidelines for long periods of time simply waiting for a high-probability setup to occur. The pros trade much less frequently than the amateurs think.

Second: The trend is not always your friend. Perhaps the most common axiom in trading is "The trend is your friend." That is a half-truth.

The trend is a fair weather friend!

It is your friend early on. But trends get run out of steam.

There are 2 times to trade when you can put stats on your side:

Early in a new trend.

When a trend is getting "tired."

Trading only at these 2 times allows you to put the statistics of the "edge" of the bell curve on your side. Trading in the middle of a trend, puts you solidly in the middle of the bell curve where anything can happen.

Third: Participate in chat rooms for day trading tips and do the opposite!

I've participated in many chat rooms over the years, and have received a tremendous benefit from them. But the benefit did not come from listening to the teacher. It came from watching the comments of the participants as they shared what they were doing at any given time in the market.

The vast majority of the time they were dead wrong in their approach.

They represent the collective voice of the unprofitable masses. It's uncanny how all the amateurs think alike when it comes to analyzing the markets. If you follow them in the chat rooms long enough you'll pick up on the patterns of the things they do wrong over and over. Then you'll learn to do the opposite and win.

As an example, one of the most common problems amateur traders have, is resisting the urge to fight the trend. You'll often hear comments such as: "The market can't go any higher than this." "This market just has to turn around at this point." "The market is definitely way over-extended now."

It's uncanny how the retail traders as a group, seem to be determined to find tops and bottoms. For some reason they have a hard time trading with the trend and seem obsessed with trading against it. Of course this can spell big money for you. Once you know what the amateurs are doing, you can make money be trading against them.

Day trading can be extremely rewarding, but to be successful you must stand aside from the masses and avoid the herd instinct that drives so many. These 3 day trading tips can help you be among the minority who succeeds.