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Everyone who wants to learn day trading needs to follow certain guidelines. I won't say rules because a large amount of people don't like the word, but principles. A number of them are quite well known and a number of them are less so, but they're all crucial to the successful trader. The Forex Rebellion calls them the four major principles of day trading.

1. The Buck Stops With You

Whether or not you are looking about for a day trading programme or developing your own, remember that whatever you do is your responsibility. Ask for advice and help by all means, but don't believe everything you hear. People are different and their trading styles can alter hugely, so never follow advice blindly.

Equally, you should buy in a system but do not neglect to test it. Even if the guy who designed it is saying that it'll double your money in 2 months for certain sure, you must test, because there are three possible Problems with that. One, he could be lying. 2, perhaps it used to work but it does not work any more. Three, maybe it works for him except for some unusual reason to do with your spread or whatever, it does not work for you. Your money is your responsibility and yours alone, so put the system to work on a demo account till you are sure.

2. Be Calm

The most important enemy of any trader is their own emotions and this is especially true for the person who wants to learn day trading. If you're the sort of person who makes bad calls under stress, you might want to think again about choosing day trading as your system. This is a fast moving world where seconds can count in thousands of bucks, so you want to keep a particularly cool head.

Now pretty much everyone likes to think they're a calm kind of person who would react way below pressure, so even if you're convinced you are going to be the world's number one ice cold trader, test yourself as well as your system in that demo account. If you veer off the system even once or start changing your position size, closing out early, waiting too long etc in demo mode, sorry but you aren't prepared for real life trading when things will be much more hairy. Work on it.

3. Track Everything

Even though you have got to work fast when you're using day trading systems , it is worth bothering to pen everything down. Again this is a habit you can train yourself into while in demo. You'll be dazzled how much it helps you to grasp why things went wrong or right when they actually did. This can enable to to tweak a marginal system into a profitable one and make all the difference to your bottom line. An easy spreadsheet recording your position, the signal(s) and the opening and closing prices is enough during trading. Afterward you may wish to add a comment.  

4. If You Doubt, Stay Away

This is a famous trading and investment rule. Do not take a big gamble on something that almost fits your system but not actually. It may work once but over the long term this will lead to disaster. There's probably a reason why the system is set up for the signals that it has , and if the market doesn't fit, do not force it.

Similarly if you are sick or under stress about another area of your life, it can be better to keep away from the market, especially while you're still a relative beginner. There will be other and better occasions to learn day trading when you are feeling in peak condition.

Tags: day trading, forex robot, forex software, forex trading, intraday trading, trader