How to make money by smart trading?

<p>Getting underway in day trading involves putting your financial resources together, setting up with a broker who can handle day trading volume, and engaging in self-education and strategic planning. Here's how to start in five steps:</p><p><strong>Step 1: Research trading strategies and principles.</strong></p><p>You need to educate yourself. Before you start trading, it's crucial to understand the trading principles and specific strategies used in day trading. Read books, take courses, and study financial markets. The major topic to study is technical analysis, which should include reading up on trading psychology and (this is a must) risk management.</p><p id="isPasted"><strong>Step 2: Develop your trading plan.</strong></p><p>Your plan should specify your entry and exit criteria, how much capital you will risk on each trade, and your overall risk management strategy. Before investing real money, put your plan into practice with a real-time trading simulator.&nbsp;</p><p id="isPasted"><strong>Step 3: Choose a trading platform and fund your account.</strong></p><p>You'll want a reputable broker that caters to day traders and has low transaction fees, quick order execution, and a reliable trading platform. Once you're ready, fund your account. It's advisable to begin with a relatively small amount in your trading account and only put in money you can afford to lose.&nbsp;</p><p id="isPasted"><strong>Step 4: Begin trading with small positions.</strong></p><p id="isPasted">This reduces the risks of losing all your money on one or a series of bad trades while you're still learning. As you do so, continuously review your trades and check them against your learning resources to adjust your strategy. Day trading requires constantly adapting to changing situations.</p><p id="isPasted"><strong>Step 5: Maintain discipline.</strong></p><p id="isPasted">Adjusting to changing circumstances does not mean shifting your stop-loss and stop-limit settings or other trading criteria as you take on more risk. Successful day trading relies very much on discipline and emotional control. Stick to your trading plan; don't let emotions drive your decisions. That's the way to quick ruin.</p>