Day Trading Tips – 1


It can be hard for some traders to believe that they will have to stay OUT of the markets most of the time while day trading. At the first glance, this suggestion might even appear counter-intuitive. Think of this fact like this – the less the time you spend in a trade, the better are your chances of preserving your hard-earned money. You are at a less riskier position when compared to someone who is always on a trade during the market hours. Minimize the amount of risk you take while trading and see the profit potentials surge through the roof.

Quite often, you will come across market gurus who seem to have answers for every movement made by the stocks and currencies – after it happens. The recommendations of the others will never help you out while day trading. As a rule of thumb, you must always stay away from all / any tipsters. If they knew something is about to happen, why aren’t they making money using the same tip?

However, the beginners must always look out for advice and suggestions coming forth from the experienced traders. These experts will never talk about any stock or commodity in particular. They will only have general advice regarding trading.

For instance, you must never hold on to any positions just before major news announcements. The price might swing either sides leading to erosion of your existing profits.

Some other general day trading advice that I am willing to give away is the following:

a) Please remain mentally prepared to take a loss where necessary

b) It will not work out to your advantage to be greedy while day trading

c) Always stick to your day trading plan and never waver from it

d) Take some time to prepare for the day before the market opens

e) Likewise, know your market so that you might have an understanding of the wild price fluctuations

f) Remain vigilant during news announcements

g) Day trading is all about protecting your capital – it is not always about chasing the profits

h) Always trade with the trend and not against it

i) Do not be addicted to day trading

j) If you did not get a chance to place a trade, wait for the next opportunity. Never chase the market.

 

The points listed above might appear very trivial to some of the readers. Think about all those days when you had to incur huge losses. By all probabilities, you might have ignored one or a couple of these rules. And because you ignored them, you had to suffer the consequences.

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