Day trading tips can come in many forms. Every investor may want something different – from free stock requests, to tax hints when trading intraday. In this guide, we've gathered as many useful tips as possible. These range from psychology and strategy to money management and training videos. So, from beginner to advanced trader, use our list of tips that can help intraday traders.
Top 10 Day Trading Tips
With so many tips and tricks out there, what are the main clues you should know?
1. Always Have a Plan
Arguably, the most important tip of all. Make sure you know what you are buying and selling (eg Tesla shares), how much you will be trading (eg fractional shares) and when you will be trading them (eg market close).
A trader without a plan will inevitably make mistakes and will most likely lose money. Don't risk cash until you have a concrete plan of action.
2. Manage Risk
It is imperative that you sit down and outline a comprehensive risk management strategy first. This will ensure you only lose what you can afford. Without a strategy, your career as a day trader can be short-lived.
A good approach to risk management would include identifying stop-loss levels per trade and trading with a reputable broker. You also need to have an overall strategy so that individual positions don't jeopardize your entire portfolio.
3. Utilizing Technology
With thousands of other traders out there, you need to take advantage of the resources available to you to stay ahead. With that in mind, charting platforms offer a number of ways to analyze the market. You can also retest your strategy against historical data to fill in any gaps.
The mobile app will also ensure you have instant access to the marketplace, almost anywhere. Combine that with a lightning-fast internet connection and you can make fast, informed and accurate decisions with the click of a button.
4. Never Stop Learning
Successful traders are never complacent, they are always looking for ways to trade smarter. That means staying up-to-date with the news, making use of trading books, and following the stream of thought as it emerges. Markets, like cryptocurrencies, are evolving and you need to adapt to them.
5. Lead With Facts
This is one of our most important day trading tips. Make sure your strategy is grounded, backed and backed with facts. Humans are emotional creatures. After today's big win, you may feel as bold as usual when the market opens tomorrow. Don't fall into the trap of writing your emotions affect your trading decisions. Leave it to the data.
6. Have Entry & Exit Rules
There is no such thing as a 'perfect entry and exit'. Stick to the incoming and outgoing parameters in your package. If you're starting to think 'maybe I should see if this works', think again. Discipline – you'll basically be grateful for it.
7. Don't Concentrate on Money
This may sound counterintuitive, but hear us out. Having an edge at the forefront of your mind can lead you to do reckless things, like taking small profits for fear of losing what you've won, or jumping right in so you don't fall behind. Instead, focus on sticking to your strategy and let your strategy focus on making you money.
8. Take Responsibility
Too many day traders lose and then say the market, like stocks or forex, is out for them. By not taking responsibility, you will not learn from your mistakes. Whatever happens, point the finger at yourself, in a constructive way. What did you do wrong? how
9. Create a Trading Journal
Keeping records of previous trades proves to be very useful. Today's software, allows you to quickly and easily store all your trading history, from entries and exits to prices and volumes. Your historical data is useful when trying to identify problems and change your strategy, enabling you to make smart decisions in the future. You never meet a trader who regrets keeping a trading journal.
10. Know When to Stop
If the strategy doesn't work, don't waste money on it. Go back to the drawing board and think again. If you can't stick to your plan, don't sit in the hot seat. You'll only start off on slippery and often dangerous slopes, and trust us, there's no money in the end.