Day Trader Tips – Making Your First Trade
Why Should You Be Day Trading?
Day trading can be a lucrative method of supplementing your income or even making a living. Yes, it can be done, but it requires investments in both time and capital. Thousands of individuals begin as a day trader every year and many also become disillusioned and abandon their efforts in a short period of time. There are plenty of opportunities to buy the hot stocks which brokers and friends promise you just can’t miss, but a significant number of those are best avoided if you want to retain your capital and turn a profit.
No one is more interested in your financial well-being than you. The impetus is on you to invest wisely and cautiously to ensure retention of your capital and respectable gains. Start off with the right mind set and strategy to increase your potential to realize a profit.
What you DON’T need to start Day Trading
A college degree
A fortune to invest
What You DO need to Start Day Trading
An online broker that aligns with your investment strategy
Some beginning capital to invest
An investment strategy – more on this later
Discipline – don’t over-extend yourself on a single buy that could end your day trading activity
Patience – for finding the right investment at the right time – be selective
How You Get Started as a Day Trader
Day trading is by definition the buying and selling of financial instruments in the same day. There are certainly instances when even day traders may extend their retention of an asset to another day but that is the exception, and is referred to as swing trading. Swing trading is still short term but buys are held for a somewhat longer period than day trades.
It is important to determine which types of investments you want to participate in: stocks, bonds, commodities, forex, etc. This decision will help formulate your strategy and limit your focus to those particular market segments allowing you to be more efficient in those markets.
Use information available to you such as news feeds, stock tickers, and other reliable sources of information. You need to know when a company is in a position for gains or losses to take advantage of either scenario.
Additional Tips for Day Trading
Practice – you don’t want to just jump into the water to figure out how to swim. Many online brokers and investment sites provide functionality that allows you to test your strategy without using real money. Test the waters and see how well your investing strategy performs, fine-tuning it before making the move to fund an actual account with the broker.
Do your research on best practices for day traders and selection of online brokers to select the one that best suits your needs. Online brokers vary in the financial markets they participate in, fees and commissions charged, and tools offered to their clients. Be sure your selected broker can execute your trades in a timely manner to get the day trading results you need. Delayed execution could mean lost opportunities.
Research – examine a stock’s history before making a buy. Attributes you will want to look for in a stock:
Volatility – a stock that has more volatility has the potential to provide more significant short-term gains (and also losses)
Liquidity – you want to make buys that should also be easy to sell when the time is right
Familiarity – companies or businesses that you’re familiar with and comfortable with are good potential buys. Some of the most famous financial experts suggest that investors “buy what you know”.
Success in Day Trading
Doing homework and sticking with a strategy that works can result in significant profits for day traders. Stay focused on your investment goals. Learn to utilize analysis tools and market charts to identify trends and opportunities. The more you educate yourself in such tools the better informed you will be in making trades.
SureTrader is a leading online broker that provides clients with analytical tools and stock tickers to keep a close eye on your assets in real-time. News feeds and other analysis of stock activity and trends provide the knowledge that gives you an advantage over other online brokers. Friendly and knowledgeable support provides reliable assistance to clients 24×7. Utilize SureTrader’s information from multiple exchanges and in national and global markets to make the right investment choices that align with your individual financial strategy.
SureTrader executes your trades quickly and reliably to increase the accuracy of your timing giving you a competitive advantage. Desktop and mobile applications ensure timely and flexible access to SureTrader services – iOS and Android platforms are each supported. SureTrader investors leverage our global services to make trades quickly and easily even in after-hours trading.
Contact SureTrader right away to get started doing online trading with the best in online brokers.