Common Sense Strategy for Day Traders
Day trading as an activity or especially as an occupation is fraught with opinions and sceptics that portray it as a path to confusion and frustration at best, and to financial ruin at worst. Contrary to such opinions are the thousands of day traders turning trades into profit on a daily basis. Not that every trade is a win, but the name of the game is gains outnumbering losses.
What makes the more successful day traders stand out above the rest? There are a number of factors that combine to create day trader profits:
Education – learn the terminology and tools of the trade including chart techniques, indexes that apply to your particular investing market segments, and articles written by experienced day traders for pros and cons in day various day trading approaches.
Online broker services – utilize an online broker that gives you access to relevant information such as current events and breaking news that impact your investing strategy. Recent events such as drastically falling oil prices, Chinese economic woes, and political unrest in the Middle East are excellent examples. Other services include access to charting tools and real-time market information.
Experience – allow yourself the time to learn not only from the experience of others but also from your own personal experience. By investing conservatively when first starting to day trade you become aware of what works for you and what is less successful.
How Does Common Sense Factor into your Day Trader Strategy?
Topics listed above are of course some of the very basic common sense factors in your investing strategy. Others that all day traders – especially beginners – should pay attention to:
Limit your losses – never venture all your available capital into a single investment or day’s trading. Market volatility could endanger your finances and make you a ‘former’ day trader very quickly.
Commit – anything worth doing – especially where money is concerned – is worth the time necessary to understand the process and methodology that promote success. Read books and articles to make sure you possess a thorough understanding of day trading techniques and potential causes of failures. Don’t expect to become a millionaire overnight regardless of what you read on commercial internet sites or television infomercials.
Select your online broker wisely – brokers vary greatly in fees charged, services provided, investment vehicles offered to clients, trade availability (hours of trading), and support offered to their account holders.
Exercise patience – if the right opportunity does not present itself on any given day, wait for the next day. Don’t expect to earn a certain amount of money each day or week – some days or weeks will be better than others.
Tools – understand the need for tools, whether it’s an understanding of various charts and indexes or arming yourself with the right software and computer technology to make the most of your broker’s offerings such as access from mobile devices.
Making the Most from your Day Trader Strategy
Day traders who utilize technology and analytical tools combined with common sense can boost their opportunity for successful trading significantly. Experience is one of the best teachers for day traders. Keep clear and detailed records of trades executed with the results achieved and backing information on what drove your decision. Also record any other relevant information that impacted your gain or loss (news events, changes in legislation, etc).
SureTrader is a leading online broker with the tools and news sources that complement your day trading strategy. SureTrader provides friendly and courteous support available to our clients on a 24×7 basis to answer any questions and resolve problems.
SureTrader’s desktop and mobile applications ensure timely and flexible access to SureTrader services – iOS and Android platforms are each supported. Global access to services enables quick and easy trades even in after-hours trading.
Contact SureTrader right away to get started doing online trading with the best in online brokers.
Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.