How to Get Started with Day Trading
Do you want to make money quickly in a fast-paced adrenaline-pumping environment? Are you committed and disciplined to develop a strategy and stick to it while remaining focused on multiple sources of information and make financial decisions quickly, changing course at a moment’s notice?
If the answer to those questions is an emphatic “Yes” then day trading just may hold the key to your financial success. Day trading is a method of investing where traders make buy and sell orders frequently and quickly based on slight changes in evaluation, up or downturns related to indexes the view as relevant to their trade strategies, or even news events that they determine will impact a financial vehicle’s value in the very short term.
Day trading is an appropriate name for this method of investing since traders do not retain their buys for the long term, normally closing out their buys by the end of the market day. Long-term investors or swing traders may hold on to a buy for days, weeks, months, or even many years. This provides them with some level of protection from the standpoint that a drop of the value of a stock, commodity, or currency can just be held until such time that the trend reverses and the value rises again. In the day trader playbook there is no such time buffer to recoup losses. Traders can limit their losses through stop loss values that sell off a stock before the negative direction becomes too severe.
Day trading activity is all done through online brokers that execute buy and sell orders on behalf of the day trader. Monitoring activity online is how traders determine the best time to execute a trade and when to sell. Strategy includes many factors:
- What market segment(s) to participate in: stocks, bonds, commodities, currencies
- How much capital do you have available, and how much can be risked on an individual trade
- What tools to utilize: there are numerous well-known market indexes, stock tickers, and news feeds available in real time
- How to monitor activity: home computer, tablet, mobile device – this may impact your choice in online brokers
How to Get Started in Day Trading
Getting into day trading is relatively simple given your decision to participate and your understanding of potential losses as well as gains. You will need a competent and reliable online broker to execute your trades and provide information to keep abreast of market activity and your specific trades.
Learn to utilize the tools your broker makes available to you so that you’re informed of volatility that opens the doors to opportunity for gains, and allows you to limit your losses.
Implementing Your Day Trading Strategy
Once you’ve joined the ranks of day traders you will continue to learn as you earn. There are a great number of charting techniques, market indexes, newsletters, and day trader blogs that allow you to share tips with other traders. You may even want to join a local investment club to learn from other long-term day traders what has worked for them – and especially what didn’t work.
If you’re still a bit leery of jumping into day trading attend a local class on the subject or read a couple of books. You’ll be amazed with the wealth of knowledge available on day trading strategy, techniques, and tools both in book stores and on the internet.
SureTrader is a leading online broker with tools and news sources for accurate analysis and lightning-fast trade execution. SureTrader provides unmatched 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.