Day Trading Tactics that Work – and Don’t
What are Your Day Trading Tactics?
It probably goes without saying that the primary focus and tactic of day traders is to make money. But there are definite tactics and strategies that day traders must consider when putting their capital and financial future at risk. Beginning day traders can even be confused by mixed messages from many varying sources of information. It’s often best to get the best information available from a trusted advisor or broker then make your own decisions. Your personal goals and risk tolerance are two of the most important considerations. But there are more factors that come into the equation.
Listen to others – read as much as you can from successful day traders and like-minded investors and pattern some initial trades taking their experiences – good and bad – into account.
Don’t listen to others – sound contradictory? This piece of advice is geared more toward jumping into markets you’re not familiar based on the neighbor’s or family member’s “hot tip.”
Read – there are many books and reliable web sites that are loaded with guidance on day trading techniques and cautions. Most are written by traders who have been there and are sharing legitimate pros and cons of investment options, how to pick winning trades, and just as importantly how to minimize losses.
Take heed of the most common caveat that financial advisors and investment firms put forth: “Past performance is not necessarily indicative of future results.” Don’t make the tragic mistake of expecting that a company that has been profitable for the past few quarters or even years will remain in the same mode going forward. Perform due diligence in analyzing recent earnings and news of conditions that could impact your proposed investment. This could include news of mergers or acquisitions, management shake-ups, or political decisions that could impact future operations.
Formulating Your Day Trading Tactics
Once you have a basic approach to day trading you can translate your goals into tactics or strategy to achieve those goals.
How much will you invest on a single trade? Start small to avoid excessive risk and build confidence in your approach to day trading.
Will you focus on a particular market segment or are there several options you wish to consider? Long-term investors are famous for their “invest in what you know” approach to investing. If you know very little about Forex investing and how it works you should probably look elsewhere for investments until you become more knowledgeable in that market.
What will your trading session be like? Are you prepared to engage in multiple trades concurrently or will you close one trade before moving on to another? Be sure you’re prepared for the mental side of day trading before you juggle too many trades and lose track of the optimal time to buy and sell. Day trading is most certainly a psychological activity.
Keep an open mind and keep learning. Your expertise will evolve over time, as will your confidence.
Day Trading Tactical Partner – Your Online Broker
Another key tactical decision is selecting your online broker. Analyze the various options available to you in selecting your broker, as well. Fee schedules, available trade hours, analytical tools, support, and investment vehicles vary greatly among online brokers.
SureTrader is an online broker that provides real-time feeds of information that gives traders a technical and information advantage. This in turn leads to the potential for optimized profits. Superior services make day trading more enjoyable and successful for SureTrader customers.
SureTrader is committed to superior customer service 24×7 to answer questions and to resolve problems quickly and efficiently. SureTrader access is available on any platform and can be accessed anywhere, anytime from your desktop, laptop, and mobile devices (Android and iOS devices are supported). Trade when it’s most convenient for you even in after-hours markets.
Contact SureTrader right away to get started doing 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.