It's simple to learn how to make money with day trading
You don't have to go to college for years. And unlike most other professions, years of experience are not necessary either. After teaching hundreds of people how to make money with day trading, I firmly believe that everybody can learn how to become a successful trader.
What is day trading?
Day trading is the practice of buying and selling financial instruments throughout the day. As the day progresses, prices will rise and fall in value, creating both the opportunity for gain and the possibility of loss. Day trading is the trading of financial instrument where buying and selling is done on the same day before the market gets close, hence got its name Day Trading. Day trading is also known as intraday trading. Traders who participate in day trading are called day traders or active traders. It is most popular among traders due to high returns. This type of trading involved high risk and a day traders have to make fast decision depending how market is moving and hence not advised for the beginners.
Strategies for Day Trading
We hear a number of times that day trading people loose lot money though they perform better than others. The reason behind this may vary from person to person, like fear, greed, emotions, lack of knowledge etc. Therefore it is very important to follow proper rules for better results not only here but in every field of life. Below are few of the important strategies a day trader must know:
- 1. Good Knowledge: To be a good day trader it is must to have good knowledge about technical analysis and good strategies and the most important is to interpret both into some meaningful information.
- 2. Book losses like profits: Don't become greedy to book profit, assuming it will increase, similarly don't wait for the market to turn around to book losses. Play safe and always determine profit and stop objective before entering a trade.
- 3. Patience and disciple is the key for a successful day trader. Most of the day traders lose money because they lack above mention discipline and play emotionally.
PLAN YOUR TRADE
Traders who enjoy the most success in day trading, regardless of whether theyÃ¢â‚¬â„¢re in it for a living or for some extra income on the side, generally have solid trading strategies and the discipline to stick to their trading plan.
Keep in mind that day trading is a very competitive field. In order to succeed, you need to maintain focus on a set of strategies which you can implement immediately, without hesitation. Remember, a proven, strategic trading plan can give you an edge over the rest of the market. You will not get rich on just a single trade.
Successful traders know that trying to hit a lucrative home run on just one trade is a sure way to get burned. The key is consistency. You need to devise a solid strategy that produces consistent trading profits, and you need to learn and adapt as your experience with day trading grows and evolves.
If you want to succeed with trading, then you must invest both time and money to acquire the knowledge that you need the discipline to follow your trading strategy, and the patience to wait for the Ã¢â‚¬Å“perfect trade.Ã¢â‚¬Â
Too many hobby traders, intellectuals, professionals have tried day trading, and, unsurprisingly, theyÃ¢â‚¬â„¢ve failed. They bought the tools, but they didnÃ¢â‚¬â„¢t have the knowledge they needed to succeed. As in all things, education will do wonders for the aspiring Ã¢â‚¬â€œ and experienced Ã¢â‚¬â€œ trader.
Types of Trading Style?
There are different types of trading styles a trader can chose depending on its personality and computability, but the ultimate aim of all type of trading is to make profit. Based on the duration between buying and selling of the financial instruments trading styles can be categorized into:
- 1. Day Trading (same day)
- 2. Short Term Trading (1 day to few weeks)
- 3. Medium Term Trading and (few weeks to few months)
- 4. Long Term Trading (few months to year/years)
Advantages of Day Trading
- 1. Zero Risk: Since the position is closed on the same day, news and events related to the stock wont effect the traders.
- 2. Brokerage: For day trading the brokerage is low compared to delivery trading, however it differ from broker to broker.
- 3. Short Sell: In day trading a trader can sell financial instrument first and buy later called short sell.