Seven Steps to Day Trading Success
How Can a Beginner Ensure Day Trading Success?
First, it’s important for any day trader – especially a beginner – to understand that there are no guarantees when investing. All funds that you allocate to any type of investment are at risk. Your key is to minimize risk while making a profit. Even small gains are obviously much more advantageous to your financial position than losses of any magnitude. With the goal of profitable day trading sessions in mind, there are numerous steps beginning traders need to follow, and even experienced traders need to live by as well.
Obtain some education:
There are many web sites, books, seminars, and webinars available that are written and run by knowledgeable and experienced resources. Spend some time learning the terminology of day trading and investing first, then proceed with gaining an understanding of each term that applies to your specific investment strategy.
This is also important to your success, especially for new day traders. Are you planning to just hit the market for the “hot” item of the day, or will you develop a strategy such as focusing on a particular market like precious metals, energy stocks, or tech stocks? If you possess particular knowledge of an individual business or commodity it presents an especially relevant market niche to start from. Many leading investors advise traders to participate in markets or products they’re familiar with.
If your intention is to enter into intense online trading sessions for several hours on a regular basis, you should consider a high-powered desktop platform that provides sophisticated charting capabilities, tracking of individual stocks in real time (watch lists) and automated execution of trades when your price point or exit point is reached. On the flip side are day traders who are on the go constantly and require mobile access to their accounts and trade executions whenever and wherever they may be. Look for an online broker who provides the trading platform and tools that meet your specific needs.
Once you understand the terminology and have established the platform that will best accommodate your trading needs, invest your time first to understand the tools offered by your online broker in the way of charting and graphing techniques, monitoring of market indexes, and access to news feeds that have the potential to impact financial markets and change your trading direction. An important tool to consider is the level of support to clients offered by your broker.
Even experienced day traders can sometimes become overwhelmed by the sheer volatility of individual stocks and market segments as a whole. No trader will be successful with every trade. Remain persistent and flexible in modifying your strategy as you gain experience.
Day trading will always require an online broker to execute your trades. Before you select an online broker consider whether or not the broker accommodates your trading needs in platforms, accessibility, tools, support, variety of investment vehicles offered, and fee structures.
Every investor or day trader gains confidence and a better understanding of market movements through time and experience with investing tools. There are classes, investing clubs, and even web sites that allow simulated trading with test accounts to see how you fare with trading before you risk your actual capital.
One word of caution:
Avoid investments that offer “guaranteed returns” or a specific rate of profit on your investment. Any experienced investor will tell you that there is no such investment as a “sure thing”.
How Your Online Broker Contributes to Day Trading Success
Your online broker is your link to profitability. By providing the tools, access, and support you need your broker assists you with making profitable trades and avoiding problematic choices.
SureTrader is an online broker that provides access to multiple platforms to leverage critical information and powerful software. Options include a free web-based trading platform as well as our powerful desktop trading platform loaded with advanced features to enhance your position for successful trading.
Our award-winning support puts you in touch with real people 24×7 to help clients with questions or to resolve problems quickly and efficiently.
Contact SureTrader right away to get started investing online 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.