Making a living from markets (Forex, Futures, Stock and Option) is quite hard. A good trader should be very disciplined and follow his strategy.
There are a lot of trading types among them High-Frequency Trading, which is always done by computers on behalf of hedge funds.
This type of trading involves taking countless positions in the market in a very short period of time.
Some individuals trade frequently and occasionally take more than 100 trades per day.
Unlike these traders, there are others who minimize the number of interventions in the market and have very satisfactory results. Personally, I belong to this category.
Is it profitable to take only one trade per day and still make money in the long term?
Yes, it is possible to take only one trade per day and make money every month.
In June 2018, I made 1780$ net of profit in E-MINI S&P 500 trading only one contract in every trade. In a whole month, I made only 17 trades
(There are about 20 trading days per month), so my 17 trades are less than one trade per day.
My strategy is Day Trading, and I trade only in the opening of the US markets.
My trades can last minutes to hours but never overnight.
Some scalping traders scan the markets from morning to night looking for opportunities and sometimes take dozens of trades, but for me, it’s very risky.
Quality trades vs quantity trades
Making a lot of trades per day in several markets can only raise the risk of losing trades and having a headache. This type of trading should be left to High-Frequency Traders and Algo traders.
By practising day trading surgically as I do and positioning myself in the market very rarely, I can make a quality trade every day without stressing, so that I can finish the most of my trades in the green.
The psychology of the traders
Why do 95% of traders fail to apply the strategies and the courses they learned?
The answer is psychological, humans react illogically when their money is at the stake.
The solutions to the psychology of the traders are very hard to implement in live trading and needs a lot of practice.
So, The best and easy solution to this problem is to automatize your strategies, but it can be very costly if you don’t know how to code it.
Finding the right broker seems to be very easy, but it not the case.
I will show you some points that you need to check about your broker before going live with it:
- What is the minimum deposit that you need to start?
- Funding methods (wire, cheque, ACH,..)
- Contract Margin.
- Regulator (NFA,..)
- Commision per side.
- Monthly Platform Fee.
- Demo account.
- Hidden fees like (Data, Level II,..)
It is strongly advised to apply the knowledge acquired during courses or training.
Which will allow you to get your hands on and practice before speculating on a real account in the real world.