Day trading for a living can seem to be exciting and less complicated on hearing the success stories of traders. But you will realize it is not an easy task when you step inside the shoes of a day trader. As you know, everything has a break through and similarly there exists certain day trading strategies which is used by market experts to be successful. But, what is Day Trading?
DAY TRADING
Day trading involves the buying and selling of securities and commodities the same day. Day trading is more prevalent in the forex markets. A trader who follows this method is referred to as a Day Trader. Day trading requires an in-depth knowledge, sufficient capital, a strategy which could generate consistent profits and cut down losses and most importantly, TIME.
Here are 7 to-do’s to follow which could make day trading work the right way for you.
KNOWLEDGE - THE MOST IMPORTANT COMMODITY TO TRADE
The basics is not going to help you anymore. The definition of what is day trading could only help you explain it. Knowing how to start day trading, learning techniques and strategies is a must to flourish as a day trader. Staying updated with the latest stock market events and news, subscribing to a financial blog and reading financial magazines will definitely prove helpful to your day trading career.
KNOW YOUR TRADING CAPITAL
This could be the tricky part. Understanding how much you need to invest and how much you can invest should be managed and balanced well. It’s as simple as that. Invest the money which you can afford to lose. Try to make profits with the initially invested capital and cut down losses as much as possible.
SET ASIDE TIME TO TRADE
Being a day trader, you need quality time to trade. Set aside time where you can trade with complete dedication and null distractions. Do not trade in a hurry. If you have only minimal time left with you, it is better to trade the next day rather than to lose your investment.
PLAN YOUR TRADE TIMINGS
Know the market strategy & trends - the way it works, how it moves and time your trades accordingly. Generally, the market remains more volatile during the opening & closing hours. Experienced traders consider this as the perfect time to trade as the fluctuations are quite high. Though the rapid hours offers plenty of opportunities, it’s safer for beginners to avoid them at the beginning and concentrate on the noon hours which has comparatively lesser fluctuations.
START SMALL - PROGRESS SEAMLESSLY
Being a beginner, it is always suggested that you do not risk a huge amount of your capital for a trade as unexpected events can happen any time. It’s okay if you bag only one or two successful trades a day. What really matters is, whether you are able to maintain the same consistency every day and earn profits from trading.
THE ROUTINE CHECK
Before you start to trade every morning, doing these things could help you gain more control of your trading career
- Check the economic calendar to know about the market statistics and decide your future trades.
- Review your trading strategy and see if there are any changes to be made.
- Check your account balance and decide your investment per trade.
- See if you have a proper internet connection to have uninterrupted trading sessions.
STRIVE OFF THE IMAGINARY WORLD
Be realistic about your trading profits. You cannot shoot up sky high in a fortnight or less. It requires experience, dedication, knowledge and patience. Stay focused on your trading sessions and chart down your performance. Review once in a while to understand your flaws and avoid them in your future trading sessions.
