The Business of Day Trading: What Every Trader Needs to Know

Fast Track to Profitability - Trading as a Business

Develop and maintain a trading plan
a. Avoid chasing different strategies
i. Pick a strategy and stick with it
b. Outline risk management practices
i. Know where you are going to get your capital
Use a prop firm
ii. Define risk tolerances
Understand risk percentage as a sliding scale
c. Define your Edge
i. Have a strategy that you prove to yourself
ii. Establish operation hours
iii. Choose a trading focus
Swing or scalp
iv. Understand the relationship between R&R vs Win Rate
Choose and trade one market
a. Crypto, stocks, indices, ect…
i. Only trade a market with consistent structural patterns
Establish and practice evaluative mechanisms
a. Back test your strategies
i. Use FX Reply
b. Journal your trades for forward testing
i. Evaluate if it is you or your process
c. Collect and review the data from all activity (meet with others and yourself)
i. Daily, weekly, monthly
Maintain a perspective that aligns with your trading plan
a. Do not treat the markets like a video game. Treat it like your business
b. Join a community for accountability and developing discipline
c. Don’t trade for money, trade your process and let money be the outcome