To reach your goal as a day trader, you need to know day trading strategies. In addition, you have to be careful to capitalize well enough to have access to an inexpensive to usable trading site.
Here are 10 day trading strategies of how to be a successful day trader.
1. Conduct a Self-Assessment
Successful day-trading requires a combination of experience, skills , and attributes as well as a lifestyle engagement. Do not seek day trading unless one is willing to spend time, self-learn and be emotionally prepared to take chances and experience losses.
2. Arrange Sufficient Capital
Novices may start with smaller numbers, based on their preferred trading strategy, trading volume and other costs that they face. To successfully engage in day-to-day trade, you need to keep a $10,000 balance in your trading account.
3. Understand the Markets
Day traders need a solid knowledge base about how the markets work. A trader needs to have a large knowledge base from basic information (such as exchange trading hours and holidays) to complicated details (such as the effect of news events, margin requirements and allowed tradable instruments).
4. Understand Securities
In other words, stocks, futures , options, ETFs, and mutual funds all trade. Without a clear understanding of the characteristics and trade requirements of a security, the initiation of a business strategy can lead to failure.
5. Setup a Trading Strategy
The world of trade is hugely dynamic. Trading strategies can make money reliably over long stretches of time but then struggle at any moment.
One needs to keep a close watch on the efficacy of the trading approach chosen and adjust, customize, dump or remove it based on the developments.
6. Integrate Strategy and Plan
There are 5 things in integrating strategies and plans, namely how the strategy, much capital and much money will be used. Then, the assets you will trade and its frequency to place trades in stock market.
7. Practice Money Management
Managing money helps you tackle the challenges. Efficient money management will make you win even though there’s just 4 out of 10 successful trades. Trades are conducted, organized and arranged according to money management and capital allocation strategy.
8. Research Brokerage Charges
Depending on your trade needs, it is advisable to select the features and avoid subscribing to those that are not needed.
Novices should start with the low-cost basic brokerage package that matches their initial trading needs, and then opt to upgrade to other modules if necessary.
9. Simulate and Back Test
Keep consideration for brokerage costs and subscription fees for different utilities for a realistic assessment.
10. Start Small and Then Expand
Experiment with a smaller amount of a new strategy and increase the stakes after tasting success. Remember, markets and trading opportunities will stay forever, but money may be difficult to re-accumulate once lost.
Start small, test and then go for the big ones.