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7 Ways to Improve Your Day Trading Skill

Just like learning to speak another language or how to play the piano, day trading is a practice that requires a considerable amount of time in order to be successfully mastered. However, ‘putting in the hours’ alone is not enough to ensure success to improve your trading skill.

Without a clear progression plan in place, you risk falling into a cycle where certain bad habits become engrained and you make the same mistakes over and over again. To help you avoid that trap, here are four ways to improve your day trading skill.

Improving your trading skill must be grounded in fundamental knowledge of trading principles and financial markets and while it’s true that knowledge alone won’t improve your trading skill (or any other skill for that matter), you cannot improve without a solid foundation in trading knowledge.

But knowledge alone will only get you so far and improving trading skill really comes down to putting into practice every thing you have learned, testing, trying things out and refining and adapting your approach after getting feedback and help from experts.

So let’s get into the actual practicalities of how to improve trading skill so you can get out of this post exactly what you need to do to get better at day trading and to become a successful, profitable trader.

Below are 7 practical ways you can start implementing to improve your trading skill and to become more profitable in trading and making more income over time – which is the whole purpose of day trading.

1. Practice day trading

If you want to refine your day trading skills, you need to be actively practicing. However, as we said earlier, your time needs to be as positive and productive as possible. First, you need to create a trading plan to enable you to track your progress.

Once you’ve done this, you should focus on a single activity (entry points, stop loss, profit target etc) using a demo account. By focusing on a single aspect of your plan at a time, you’ll learn more quickly and easily what works well and consequently, what to avoid.

Remember, practice isn’t just about repetition—it’s about deliberate practice with a clear focus on improvement. Embrace challenges, learn from both successes and setbacks, and stay dedicated to honing your skills. With consistent and purposeful practice, you’ll sharpen your day trading skills and increase your confidence in navigating the markets effectively.

2. Review your day trades

Once your trading plan is in place, it’s important to carry out regular self-reviews to assess your progress. You should start by looking at how closely you followed your daily plans. Consider whether there were trades you were supposed to take but didn’t or ones where you failed to follow your exit plan – these are problems you need to reduce.

At the end of each week or month, you should look through your charts for that period to identify areas of concern and improvement within your strategy itself. Ask yourself questions like, is there a certain time of day where I encounter more losses than wins? Did the price continue to move past my profit target on a regular basis?

Keeping a trading journal is invaluable during these self-reviews. Your trading journal should contain detailed records of each trade, including entry and exit points, trade rationale, emotions during the trade, and outcomes.

Ask yourself targeted questions when you review your trades such as:

  • Is there a certain time of day when I encounter more losses than wins?
  • Did the price consistently move past my profit target before I exited trades?
  • Are there specific market conditions or triggers that lead to suboptimal trades?

Keeping a trading journal is invaluable during these self-reviews. Your trading journal should contain detailed records of each trade, including entry and exit points, trade rationale, emotions during the trade, and outcomes. Use this information to analyze your decision-making process, identify recurring mistakes or missed opportunities, and adjust your strategies accordingly.

By conducting regular self-reviews and leveraging insights from your trading journal, you empower yourself to make data-driven adjustments to your trading approach. This iterative process of self-assessment and improvement is key to refining your skills, minimizing errors, and achieving consistency in your trading results over time.

Remember, the goal of self-review is not just to critique past actions but to learn from them and evolve as a more proficient and disciplined trader.

3. Distance Learning

Can you think of a more effective way to up your trading skill than enrolling on an academic course specially designed to equip you with specialist skills? And if you choose distance learning, you’ll be able to do all of your study online, at the times that suit you and your lifestyle best.

One of the best online institutions is Anglia Ruskin Distance Learning – its offering includes an enterprise-focused MBA which will give you a deeper insight into the way any type of business works, so you can develop your career with confidence.

4. Get help

Day trading requires a great amount of discipline, however, in such a high pressured situation, it’s easy for lapses in judgment to occur. Choosing a person who can hold you accountable for your trading is therefore a savvy idea. This person could be a fellow trader or simply a friend or family member.

With a trading referee chosen, you’ll have someone who you can keep updated on your performance and who can help ensure that you remain focused on your plan and avoid unnecessary mistakes. Follow our advice and you’ll be well on your way to becoming a day trader

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5. Control your Emotions

When it comes to day trading your emotions can really be your worst enemy. In fact emotional control is such a huge part of trading that there are common terms in the trading community specifically around emotional control.

The first is FOMO or Fear of Missing Out, a common psychological phenomenon characterized by a feeling of anxiety. In the context of trading or investing, FOMO often refers to the fear of missing out on potential profits or gains in the market. This can lead to taking unnecessary trades and ‘overtrading’ which must be controlled.

Another common term is ‘revenge trading’ experienced by traders who are driven by emotions such as frustration, anger, or a desire for vindication after experiencing losses in the market. It involves taking impulsive or aggressive trading actions with the primary goal of recouping previous losses quickly. However, revenge trading often leads to further losses and can negatively impact a trader’s overall performance and mindset. 

Consider practices such as meditation and breathe control and even taking a break from trading and practicing walking away when you feel anxiety.

Recommended Read: How To Do Meditation for Traders in 3 Easy Steps

4 Ways to Improve Your Day Trading Skills
Experimenting with new approaches can expand your knowledge, improve your skills, and uncover hidden opportunities that align with your trading style and goals.

6. Don’t Be Afraid to Test Out New Things

It’s easy to get comfortable when you reach a certain level of trading and to keep using the same indicators, analysis tools and strategies. And while this is important for being a consistent trader, it can also lead to becoming stagnant and not being able to improve.

Often this comes from fear of trying new things, whether it be testing out different indicators and tools or even new strategies. 

Experimenting with new approaches can expand your knowledge, improve your skills, and uncover hidden opportunities that align with your trading style and goals. Remember, stepping out of your comfort zone is often where breakthroughs happen. Stay curious, stay informed, and be willing to explore new possibilities in your quest for trading success.

Recommended Read: Elevate Your Crypto Trading Skills with Expert Strategies

7. Never Ever Quit

If you never ever quit trading there is a very high chance you will find success. The only way you really fail is by giving up and quitting. think about it from a martial arts perspective, many people think a black belt is the most skilled and toughest person – but really a black belt is just a white belt who never quit! The same can be said for trading.

Persistence is key in mastering the art of trading. The journey to becoming a successful trader is filled with challenges, setbacks, and learning curves. However, the only way to truly fail is by giving up. Remember that every obstacle you face is an opportunity to learn, adapt, and grow stronger.

If you never ever quit trading there is a very high chance you will find success. The only way you really fail is by giving up and quitting.

Stay committed to your goals and trading plan, even when faced with adversity or temporary setbacks. Understand that success in trading is a culmination of continuous effort, learning from mistakes, and staying resilient in the face of challenges.

When things get tough, remind yourself of your passion for trading and the long-term vision you have set for yourself. With persistence, dedication, and a positive mindset, you will navigate through obstacles and ultimately achieve the trading success you aspire to. Keep pushing forward, and remember that every step you take brings you closer to your goals.

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