There are two types of day traders - scalper and momentum traders. The scalper buys and trades stocks within minutes, whereas a momentum trader buy stocks that fluctuate from high to low during the day. But at the end of the day, the ultimate goal of a day trader is to buy stocks and sell them at the highest possible value. Read more »

1. Read both the books by Mark Douglas which cover trading psychology BEFORE you read or do anything else. If you don’t, I’ll say I told you so when you hit a failure barrier and don’t know why.
2. Stop loss policy - you MUST have one and practice, more practice and even more practice at sticking to it. It will not be easy but it is an essential discipline to profitable trading. Read more »

Just as important as controlling risk (money management), traders also needs to have confident in oneself. Traders need to know that even with a profitable trading system; one could also have numerous losses in a row. This is usually referred to as drawdown. Being aware of this can help to prepare you to control risk and not abandon a good trading system when drawdown occurs. Read more »