Day Trading Strategies for Beginners

Day trading - Taking advantage of the small price move - during the same day, buying or selling a financial instrument, or several times during a day - can be a catchy game but it is a dangerous game for those Maybe those who are new to it or who do not follow a well-thought-out method.Let's take a look at some common day trading principles and common day trading strategies, going ahead with basic tips, you need to know about advanced strategies that you can learn how to turn the business on a day-to-day basis.

Day Trading Tips You Need to Know

1) Knowledge is Power

Not only the knowledge of basic business processes, but also the latest stock market news and events that affect stocks - interest rates, economic outlook, etc. The Fed's plans do their homework; Make a wish list of shares that you want to trade, inform yourself about selected companies and general markets, scan a business paper and go to trusted financial websites on a regular basis. 

2) Set aside an amount

Assess how much capital you want to take for every business (the most successful day traders under risk of risk in your account less than 1-2% of the trade). Separate an additional amount of money that you can do business and are ready to lose (which can not be) while keeping money for your original life, expenses, etc.

3) Set different time, too much

Your time is required for business of the day - most of your day, in fact Do not think of this as an option if you have limited time, in this process a trader is required to track the market and place opportunities, which can be created at any time during business hours. Fast walking is important.

4) Start small

As a start, focusing on maximum one to two stocks during a one-day trading session is advisable. With just a few stocks, searching for tracking and opportunities is easy

5) Avoid penny stocks

Of course, you are looking for deals and low prices but stay away from the sharp stock these stocks are highly unwritten and the possibilities of killing a jackpot are often depressed.

 

6) Time of trades

Many orders kept by investors and traders begin to contribute to price volatility as well as open market in the morning. An experienced player can identify the pattern and choose the right way to make profits.But as a newbie, it would be better to read the market without doing any trick for the first 15-20 minutes. Middle hours are usually less volatile, while the movement starts moving towards the bell. Although crowds provide opportunities for hours, it is safe to avoid early ones.

7) Deficit reduction with limit order

Decide which types of orders you will use and enter and exit trades. Will you use the order or limit order of the market? When you place a market order, it is executed at the best available price on time; Thus, "the price is not guaranteed." A border order, meanwhile, guarantees the price, but not the execution.Border orders help you do business with more accuracy, in which you set your price (without unrealistic but executable) to buy and sell.

8) Be realistic about the benefits

There is no need to win a strategy to be profitable all the time. Many traders win 60% of their business with only 50%. The point is, they are more than losing on their winners more than they lose on their own. Ensure that the risk on each trade is limited to a specific percentage of the account, and that the methods of entry and exit are clearly defined and written.

9) Keep calm

There are times when stock markets test your nerves. As a day trader, you have to learn to fear greed, hope and fear. Decision should be controlled by reason and not emotion.

10) Stick to the plan

Successful businessmen have to move faster - but they do not have to think fast enough. Because they have already developed a business strategy, along with discipline to catch that strategy, in fact, it is more important to follow your formula to try to chase the profit, there is a mantra between the traders. : "Plan your business, then do your business business.