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Day Trading Secrets: Top 10 Trading Secrets For A Successful Trade

Last Updated September 20th 2020

What Are the Top Trading Secrets to Success?

What is day trading and what are the top 10 trading secrets for a successful trade? We won’t keep you in the dark! Day trading is a popular trading style that allows traders to buy and sell assets multiple times in a single trading day. Day traders can explore different markets, including forex, cryptocurrency trading, and stocks.

Because of its exciting nature, day trading attracts individual traders from all over the globe. Did you know, for instance, that day trading is particularly popular in the UK, USA and Australia?

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Top 10 Day Trading Secrets for a Successful Trade

Did you know that people keep approximately 13 secrets, five of which they’ll never share with anyone? Can you imagine what surprising secrets famous day traders may be keeping then? Wouldn’t it be great to learn more about day trading secrets to success?

Lips are sealed... no more. Here are the top 10 day trading secrets for a successful trade:

Day Trading Secret #1: You won’t make millions overnight... but you can increase your wealth over time

Though many people enter the world of trading in the hope of making millions overnight, the truth is that day trading is not gambling. You need more than good luck and four-leaf clovers to make a fortune.

While there are many success stories about quick gains and short-term success, average traders need to invest a lot of time and resources in order to increase their wealth and make a name for themselves.

From online courses and seminars to books and videos, day traders should stop believing in trading myths and secrets; they should invest in proper trading education instead. Start with Jack Schwager’s books, for example; his books can help you solve many day trading mysteries and become a real market wizard.

In the end, remember that day trading is not a get-rich-quick scheme. There are no hidden secrets - just trading data, hard work, and successful day trading strategies. 

And that’s a good thing! Because it helps us, the common folk, realise that day trading is not only for trading gurus and the big fish. Anyone can access the world of trading and make a profit in the long-term!

Day Trading Secret #2: You can’t outsmart the market... but you can follow along

Do you want to know a secret? You can’t outsmart the market! There are so many factors that affect the world of trading that even the best trading strategy can fail. Who could’ve predicted the coronavirus pandemic, for example?!

In other words, you don’t have to be a genius to start day trading. What you need is emotional intelligence and flexibility instead! Simply identify an investment niche that you are interested in. From stocks to forex and cryptocurrency trading, day trading allows traders to buy and sell different assets within a single trading day. Note that while each market has its potentials, some may require higher capital to enter. Pick a market and invest enough time to master its trading secrets.

Follow the news, explore indicators and data, understand the trend... and follow along. After all, the market has only three directions to follow: up, down, and sideways, which always moves in cycles. As experts say, the trend is your friend and you should always trade with the trend. Find recurring patterns and be patient.

Once you’ve reached success in the market niche of your choice, you can move to another trading endeavour and diversify your portfolio.

Day Trading Secret #3: Keep it simple... even if it gets boring

Another trading secret that day traders should know is to keep things simple. Don’t listen to people who talk and promise too much. There are no formulas to success, no secret magic potions - just strategies. Once you’ve understood the complexities of day trading and the market of your choice, it’s time to establish a strategy. And keep it simple!

Mastering one simple strategy is better than failing at trying different complex ones. The key to success is just you being consistent, following the strategy you’ve worked hard on! When things turn out wrong - and they will - stick to your entry and exit strategy and stop orders. Simplicity and consistency! 

Even when it gets boring! In fact, many day traders know a well-hidden secret: trading can be really boring. Imagine yourself staring at screens, analysing market data, placing orders day after day after day...

But it’s only a trader’s consistency that can lead to success over time. Because you can’t control price changes but you can take control over your actions - even when the odds are against you. 

Day Trading Secret #4: Create order from chaos... aka discipline

discipline in trading, day trading secrets

Consistency is the key to success, right? But how can one be consistent when day trading is full of uncertainties, changes, and failures? How can one create order from chaos? Come closer, let us tell you a secret... You need to develop discipline. As inspirational trader Victor Sperandeo once said, “The key to trading success is emotional discipline.”

Ignore distractions, temptations, and fears. Even when you are willing to increase your leverage ratio to cover a loss, do not break your own trading rules. Take responsibility for your own actions! For instance, think twice before you continue trading after your stop has been hit. 

Learn from your mistakes and try to improve your discipline. From searching for additional data to having a journal, there are many ways to improve your trading habits and discipline.

Day Trading Secret #5: Be realistic... and forget about 100% success

In order to develop discipline, one should have realistic expectations. As explained earlier, day trading is not a get-rich-quick scheme. There’s no place for overtrading and greed in day trading. Any day trader simply needs a consistent strategy, proper education, and patience to make a profit over time.

And apologies for revealing precious secrets... but forget about 100% success! Even the kings of trading don’t win 100% of their trades. Consider 60% for a big thing.

Those who chase empty promises and believe in quick profits, usually fail. Note that more than 90% of traders lose money and quit day trading. We shouldn’t swipe these figures under the carpet!

Even when you win, be realistic. Don’t forget that this money is not only yours; think about fees, commissions, and taxes. To be comfortable with both wins and losses, trade only money you can afford to lose.

Day Trading Secret #6: Keep wins close... but losses closer

Talking about realistic expectations, let’s spill the beans! The truth is that day traders will face many failures and losses during their trading career. 

No, we can’t hide any secrets from you: you’ll lose money! Accept the fact that the market is constantly changing. It’s nothing personal - failure happens to all of us. 

There are no mathematical axioms in trading, just probabilities. So embrace losing as part of trading and learn how to cope with stress. For example, always make sure you have your entry and exit points to cope with the shock of losing.

Learn from your mistakes, seek feedback, and continue following your strategy. Plan, trade, risk, fail, continue. As day trader guru Ross Cameron says, “Day trading is an exercise in repetition.”

Day Trading Secret #7: It’s not about making money... but taking risks

To manage to cope with losses, one has to develop a successful risk management strategy. Day traders should focus on both trade risk and daily risk. 

Do not focus solely on making money or profits and losses. You need something to control your risk; otherwise, multiple losses in a row will drown you in greed, sorrow, and bankruptcy. 

That said, if you are too worried about losing money, better invest your money in a savings account. Trading comes with risks and embracing them is the only way to succeed. 

Thus, stick to your risk management plan; do not randomly move stops or trading rules just because the market is changing. As stated above, simply follow along!

Day Trading Secret #8: Trading tools can help you… befriend them

trading tools, day trading secrets

Even if you are not a fan of the Beatles, you should agree that their song “With a little help from my friends” is brilliant. We all need a bit of help! In day trading, trading tools and platforms can be good friends of ours.

Economic calendars can help day traders track market events, indexes, interest rate decisions, and so much more. Having access to charts and technical analysis data is also crucial to help day traders solve the secretive puzzles of the trading world.  

Some day traders may need to practice via a demo account to learn from their early mistakes. Others may benefit from a journal where they can track their own moves, position sizes, and decisions.

Last but not least, automation can help you master the secrets of day trading. As the number of trades that day traders can execute manually is kind of limited, automated tools can help experts get the most out of day trading.

Day Trading Secret #9: You can be your own mental health coach... for free

If you think that trading is all about price charts and data, think twice! Day trading is, in fact, more about trading psychology than finance. The importance of trading psychology is an open secret in the world of trading. No surprise that many famous day traders, such as Brett Steenbarger and Alexander Elder, are experts in the field of mental health.

You can also become your own mental health coach on your journey to day trading success. All for free! Simply invest in introspection - understand your motives, goals, and fears. Managing your emotions while trading is crucial because intense emotions, both positive and negative, can play a bad joke on your trading plans.  

While it’s impossible to eliminate emotions, good day traders manage to control them. Never trade out of greed or revenge. Start small till you boost your confidence and success.

Trust your own decision. While forums and social networks can be helpful, too much data and additional noise will make you doubt your decisions. Follow your strategy and stay consistent; trading and impulsiveness are simply not a good pair.

Day Trading Strategy #10: Your days are more than day trading… embrace your personal life

When we talk about day trading and trading success, we often forget that there’s more to life than work. While day trading can be an exciting opportunity to start trading full-time and become your own boss, you shouldn’t let trading consume you.

Try to fix your bad trading habits and create a lifestyle you will truly enjoy. Plan your days, so you can find a balance between work and life. As experts say, the most successful traders are not the ones who make millions but the ones who do not worry about trading 24/7.

Because it’s better to lose a trade than to lose your loved ones or yourself!

Key Points:

  • Day trading is a popular trading style that allows traders to buy and sell assets within a single day.
  • Day traders can learn a lot from the top day traders and their trading secrets.
  • Some of the top secrets to making a successful trade are to be realistic, analytical, organised, and disciplined.
  • The golden key to success is to find a balance between trading and personal life.

In the end, by revealing the secrets of day trading, you can compliment your trading style and improve your trading skills. We at Trading Education can help explore the secret maze of day trading - simply sign up for one of our courses and check out our regulated brokers!

Further Reading

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