Hi,
As ST had said day trading must be fun not pain. I will tell you what all I missed when I started trading.
1) I thought professional traders trade on very low time frame like 200 ticks or 500 ticks, but later understood that they trade on larget tfs like 15min or 30min.
2)When I started trading in 1min tf life was bad I was very stressed, every red bar would panic me if I am long, and every green bar would do the same in case I am short.
3)Analyse your system first with the below points,
*what is the trading time frame of your system? this is the time frame where you fine tune your entries if you are using larger time frames for determining trend direction.
*what is your R:R? this is risk to reward rationit might sound pretty easy it is not. Many think that if we buy a scrip for x and sl is at x-25 and target x+50, r:r comes around 1:2 which is pretty awesome right? no never. not that easy my friend, i too thought like this but that isnt the case. to make your r:r impressive, you need to figure out add rules for your system. you should average when your trade is winning, design rules for partial exits, rules for exemptions, rules for cutting positions sometimes if trade is not in your direction and even if sl is not yet hit. All the above are required but may not be sufficient, these are what I have realized to have good R:R.
*any system needs to have re entry signals. suppose if you keep sl and your scrip will come down take your sl and rocket in your original trade direction? this is one of the phases in traders life, if you don't cross this stage you wont even pass ukg in trading. To avoid the frustration of your sl being taken out and trade heading in your direction, you must have re-entry signals.
*Stop Loss, again not a easy thing, if you are going to think that I bough a scrip for x and x - 3 is gonna be my sl, your sl will get hit whenever possible.
This type of SL is called gambling stoploss, and if you are using this kinda stop loss you are going to feel that operators are manipulating you and market makers are fishing retail traders stop losses. Stop Loss, when not put beyond a technical barrier and within a tradeable range will get hit as many times as possible. So, think on it, how to put a sl is itself a great mystery.
*Money management, how much you will max lose per trade, how much you will max lose per month, what is max drawdown, all need to be calculated before trading your system.
There are many other points but I am able to recall these only. All the best for your trading career
