As a new day trader, you may get overwhelmed by too many things that you have to do. But, you should stay focus on one thing at a time. To help you stay consistently profitable, here are 3 stock trading tips for the new day trader.
What to focus on?
There are four essential things to start day trading. They are live charts, a trading account, a broker (a demo or live), a trading platform, an economic calendar, and a reliable internet connection.
The price chart will give you all the information you need to trade when you buy and sell. The information range from entry points to the market moves, but not economic data release. The economic calendar will help you with that. Knowing the time of major economic data release is important since the data releases may trigger a quick large price move.
Trust me, you will never want to get caught in that situation. You have to avoid trading for several minutes around that time.
Focus on one thing. You can choose, whether it is the EUR/USD in the forex market or MacDonald’s (MCD) shares in the stock market.
Besides, you need to only focus on price movement from the market open onwards. Ignore financials and fundamentals.
How to do it?
Day trading is simple. To be a successful day trader you do not need to know what every indicator does and how it works. You also do not need to know tons of strategies or techniques to analyze the market.
You only need to understand one trade setup. It is when a strategy produces trade signals and conditions warrant of the taken trade. Lear one strategy and give your best to learn it. Do not try to learn everything about the market or every day trading strategy.
Also read: 5 Traits Every Day Trader Should Develop
How to stay consistent?
The only answer to this question is practice as perfect practices make nearly perfect. So, practice a lot.
Look for a trade setup with one strategy in a demo account over and over again. You can stop once you produce a monthly profit from it, for several months.
