The best way to learn a new skill is to practise it consistently and to seek out feedback and guidance from more experienced individuals.
This approach, known as “deliberate practice,” has been shown to be highly effective in research on skill acquisition.
Additionally, setting specific, measurable goals and breaking the skill down into smaller, manageable tasks can help to make the learning process more manageable and less overwhelming.
To apply the method of deliberate practice to day trading, you can take the following steps:
Set specific, measurable goals for yourself.
For example, your goal might be to increase your profitability by a certain percentage within a certain time frame.
Or you could improve your discipline by setting goals such as these:Practice on a demo account for a month.
Enter 5 trading orders in a week with an automatic stop-loss.
Set a target with a 1:2 risk vs reward ratio. (Risk $1 to make $2).
Decide on a daily profit target.
Quit trading when this target is reached each day.
Break the skill of day trading down into smaller, manageable tasks.
For example, you might focus on learning how to read charts and identify key technical indicators, or on developing a consistent trading strategy that you can use on a daily basis.
For example, first learn candlestick formations.
Then learn candlestick patterns.
Practice the tasks you’ve identified consistently.
This might involve simulating trades using a trading simulator, or practicing with a small amount of real money before committing more capital.
Using a trading simulator is highly recommended while you build knowledge, experience & confidence.Seek out feedback and guidance from more experienced traders.
This might involve joining a trading community or mentorship program, or working with a trading coach. Especially one with over 35 years experience!!
A trading coach will help you with the following:
Begin by focusing on your trading needs
Breakdown your trading performance
Assess your trading strategy.
Suggest improvements.
Monitor your trading journal.
Stop you from making big losses.
Improve low risk trade identification.
Discuss different entry techniques.
Improve your trade management.
Suggest strategies to help you run trades for longer.
Help you manage/trail stop loss effectively.
Teach correct risk & account management.Continuously evaluate your progress and make adjustments to your approach as needed.
Keep a trading journal & review it regularly to help identify mistakes & also what you are doing well. So you can be aware of how to improve.
Understand the risks involved with day trading and have a plan for managing them.
You cannot fully learn any new skill on your own by reading books or watching videos. Yes, this is a great way to start, to build a very basic knowledge & to discover if trading is an activity which excites & interests you.
But if you want to be the best trader you can be, you need a teacher or a mentor, just as every person needs who wants to improve what ever it is they are learning.You cannot fully learn any new skill on your own by reading books or watching videos. Yes, this is a great way to start, to build a very basic knowledge & to discover if trading is an activity which excites & interests you.
But if you want to be the best trader you can be, you need a teacher or a mentor, just as every person needs who wants to improve what ever it is they are learning.
It’s important to note that day trading is a high-risk activity and it’s essential to have a strong understanding of the markets, the asset you’re trading, and the strategies you’re using.
It’s also important to have a plan for managing the inherent risk of trading, including using stop-loss orders and limiting the percentage of your account you’re willing to put at risk on any one trade
What are my chances of success if I study and practice without a teacher or mentor?
It is possible to study and practice day trading on your own and be successful, but it can be challenging and the chances of success may be lower compared to those who have a teacher or mentor.
Having a teacher or mentor can provide valuable guidance and feedback, which can help you to avoid common mistakes and improve your skills more quickly.
Additionally, a mentor can provide valuable perspective and insight that can be difficult to gain on your own, especially if you are new to the field.
