Day Trading Tips For Beginners
Day trading is, as the name suggests, a form of stock trading in which deals and transactions are done and dusted in the course of one business day. It’s a bit of a minefield, as you have to be quick and bold, but also far-sighted and in control of your nerves and your feelings.
There is a massive wealth of resources – on the Internet and in “real life” – for new traders; every expert has his or her special methods and philosophies, but some stock trading tips are universal. The best advice on day trading is so simple most people overlook it: start off with a small amount of stock. If you can’t afford to lose it, don’t risk it. You’re almost certainly not going to make a fortune overnight, so be patient.
Make friends (or at least contacts) in the industry. There will be other traders like you, who are new or who trade part time, and they’ll be more than happy to share tips and exchange trading advice. You should also keep a close eye on high-selling stocks – buy them and then sell them quickly before they plateau and begin to fall. This strategy should work most of the time, but sometimes it won’t; another invaluable piece of trading advice is not to take losses personally.
At the other end of the spectrum, you shouldn’t let big gains make you over-confident. If you have a strategy, stick to it – don’t get cocky and double the amount you were planning to spend on a commodity that day. Having said that, the short time-span of day trading is ideal for trying out different strategies and learning from them fast.