7 Ways to Start Day Trading Successfully

Day trading has become popular in recent years as access to stock markets has increased significantly. This is simplified trading with no carryovers. It’s all bought and sold on the same day. It’s a unique approach but one that’s smart if you can master it. 

While the risks remain high, there is also greater choice available, such as cryptocurrencies and ETFs. Of course, this type of trading requires serious focus and skill to reap the benefits. Fortunately, it’s easier to achieve with the right tools and know-how behind you. 

Get Educated on Day Trading

Sometimes, you just don’t realize how stressful or demanding day trading can be. Trades may last a few hours or a few minutes at a time. Some traders even buy and sell several times a day. 

It’s constant and you must be on your toes to keep up with the pace. You’re looking for stocks to buy today that’ll earn you a big payout in a matter of minutes. It’s not easy to do, even for experienced traders. 

It doesn’t matter if you know the basics, day trading is a different kettle of fish and you need to know what you’re doing to succeed. If you don’t understand the process, you can’t implement the right strategy at the right time. So, brush up your skills before you risk your money. 

Create A Day Trading Plan 

It’s crucial to define your parameters in day trading. Outlining goals, risk acceptance levels, trading strategies, what capital you have, exit strategies, and how you’ll identify opportunities are necessary to succeed. 

It’s easier than it sounds, especially when you set out certain things, such as using Autochartist to monitor and analyze trading patterns. Or setting the goal of achieving a 20% return in profits in six months. 

Stick With the Market Trend  

Some would say this ‘meek’ approach is dull and not for hardcore traders who want to reach for the stars. As tempting as it sounds to make a leap into the unknown, don’t. Going against the flow of the market may pay off once in a lifetime – if you’re lucky – but it’s an incredibly risky strategy that isn’t advisable (unless you know something everyone else doesn’t, of course). 

It doesn’t matter if you’re using Forex, NASDAQ or any other marketplace, listen to the overall trend. 

Hire an Experienced Broker 

A lot of people think brokers aren’t necessary and yet they play a crucial role in day trading. Brokers are, essentially, the middlemen who execute trades. You want one that has great experience in day trading, CFD commodities, cryptocurrencies, and everyday shares and stocks. So, look for someone who is reputable, honest, and has a reasonable fee. 

Use a Limit Order

Limit orders allow you to set the price for buying and selling. For instance, when the lower price is reached, you buy the stock and sell when the higher price is reached. The idea is that you don’t pay too much or lose out when selling the stocks. It’s a useful way to master day trading and keep your head above water. 

Stay Disciplined and Keep Emotions Out

There is a reason why every trader has an exit strategy and trading plan – so emotions don’t determine how they act. Day Trading is fast-moving and you can’t afford to let emotions get in your way. You must stick to your trading plan. 

Let’s say you’re investing in raw materials. Prices decreased by 0.01%. Three minutes pass and there’s no increase. How do you react?

If you let your emotions rule your head, you’ll make the wrong decision. Instead, take a breath, don’t panic, and follow your trading plan. This is important whether you’re using E-Trade, Meta Trader 4, Lightspeed, or any other platforms. You must remain disciplined to succeed.

Start Small Until You Gain Experience

Let’s be honest, reaching expert status takes considerable time and effort. It can, however, be sensible to start off small. As boring as it sounds, it’s a smart way to test the waters and gain experience in day trading. Remember, you are trading with what you can afford to lose, not what you can’t afford. Taking the ‘go-big-or-go-home’ strategy is plain irresponsible. 

Trading with smaller amounts will also help absorb losses without wiping you out completely. You can, of course, increase the risks you take as and when you’re ready. This is smart when you’re day trading indices, currencies, and stocks. 

A Complex and Rewarding Industry

Day trading can be a fantastic avenue to explore. Yes, there are risks, but the rewards can be equally great. Starting day trading successfully doesn’t require a college degree but rather good education, knowing when to act, and having a plan in place. You not only need to have a broker but keep emotions out of the game. 

It doesn’t matter if you’re interested in CFD investing, currencies or commodities, success comes through experience and skill.