10 Day Trading Plans For Beginners
Are you not keen about waiting to see profits rolling in? Trade that rewards you in a snap - is that where you want to invest your money? If yes, day trading is your best option. Choose a financial instrument to bet on. Keep an eye on the surge of price. Sell the instrument and make your winnings.
Sounds like a cakewalk, right? It is simple when you are aware of what day trading is all about and the strategies you need to imply. The outturns are big, only when you bet and play like a pro.
Day trading is more like a regular job. The more focused and strategic you are, the better are your profits. To help you set the ball rolling in the line of day trading, here are some unmissable hacks and tips.
Winning strategies for day trading - tips for newbies
- Knowledge plays a crucial role - Be up-to-date about the line of trade. Remember, the window of trade lasts for a very short amount of time in day trading. Be aware of what’s new in the stock markets, if there are perils, shifts in interest rates, and the economy in general.
If you are focused on betting on specific stocks, be 100% sure that you know the ins and outs of the companies or stocks you are more likely to trade. Always stick to the best possible finance-related websites in the market for knowledge. Zero-knowledge is equal to a recipe for disaster.
- Invent your own strategy - Of course, that comes with practice. The trick to remain at the top of your game in day trading is to apply strategies that guarantee a win. You can either work using the tried-and-tested tricks or cook up a master strategy.
As a rookie, always try your hands on proven strategies. Learn and master the method you are most comfortable working with. Once you are a pro, put your own spin and create a hack that works even better.
- Hunt for the right entry points - Have a clear picture of how the market works before you jump in. A useful tip - when the scales of demand and supply are way out of proportion, it makes room for the best entry points. When the supply scale is dwindling and the count of buyers are increasing, be assured that the price is about to rocket.
Keep a check on such entry points and trade using your smarts.
Set a goal - How much profit are you aiming to make for the day? Set a realistic price target and stick with it. Not only profits but where to put a stop when you are incurring loss and the trade is not in your favor.
Do not kick-start trading big - Reckon this as a learning phase. Isn’t it advisable to not put all eggs in a single basket? Well, it is no different in the world of day trade.
Don’t bet a chunk of your money in one go. Instead, invest in lesser stocks and build up gradually. Luckily, you can now invest in fractional shares too.
Penny stocks are a big ‘NO’ - There’s no doubt that low price instruments appeal big. However, investing in liquid instruments like penny stocks is pretty risky. There’s a very dim chance of making any money at all.
Learn about a risk-reward ratio - There are pros and cons of trading. However, if you have worked out a suitable risk-reward ratio, it will help you at the time of trading. A 1:3 ratio is ideal.
Patience matters - Day trading is not as simple as you imagine it to be. Keeping restlessness and greed at bay is a must. The markets can be volatile and could be a hard nut to crack. Stay patient and wait for the right time to call your shots.
Make use of technology - Leading-edge technology gives you immediate access to a world of apps that does most of your work. Put technology into use and make informed and well-thought decisions.
Trust in the plan and stay by it - Creating a plan is more like inventing a formula. It takes time and experience but once, tested and proved can and will work wonders for you.
Always plan your move in a trade-based market.