Site icon Juan Burton Dot Com

4 Day Trading Tips for Beginners

4 Day Trading Tips for Beginners

When a trade model is built around generating profits from the buying and selling of financial assets by the day’s end, it’s called day trading. While the idea of day trading is relatively simple to define, putting that concept into successful practice is not. It takes, time, knowledge, and experience to master day trading, but that does not mean you cannot give yourself a head start with these four tips.

Source: Unsplash

Create a Feed of Relevant News

It’s a fact that share traders must keep an eye on major news updates, but that need becomes dire when you are day trading. Therefore, it’s important that you don’t end up wasting your time and attention on news that isn’t specifically relevant to your day trading requirements. Thus, creating a reliable and relevant feed of daily news is of the utmost importance.

Decide on the list of shares, companies, currencies, etc., that you are most interested in trading for the day. Using Google News and/or any other reliable online resource, set up news alerts for those assets and related factors that are likely to affect their price. It will keep your daily news feed constantly updated exclusively with relevant updates.

Stay Updated with the Highest Day-On-Day Percentage Gains

In order to create a list of the most profitable shares to trade on any day, you must have access to various types of comparative market metrics. It must be real time information as well, given the time sensitive nature of day trading.

One of the most important of those comparative metrices is the day-on-day gain (and loss).This compares and ranks the various stocks in real time, based on how much the stocks are ahead or behind in their price value, as compared to where they closed on the day before.

Keep an eye on the biggest daily stock gainers to make well-informed purchases and timely sales on the day. Take some time to recognize the patterns and the expected trajectory throughout the day.

Get to Know Your Technical Indicators

Technical indicators can be defined best in short as market trend signals that indicate trade pattern detection, recognition, characterization, analysis, and prediction. Technical indicatorsare derived from analyzing mathematical, statistical, financial, comparative, historical, and behavioral data from the relevant market(s). These are essential tools for day trading because they can predict expected price trajectories with remarkable accuracy.

AI algorithms have simplified the process, making day trade a more accessible option for beginners. The same tools are enabling experienced traders to work at a much higher volume than before, while also improving their predictive accuracies in the process. As a beginner, get to know some of the core technical indicators first. These would be the:

OnBalance Volume (OBV)
Moving Average Convergence Divergence (MACD)
Relative Strength Index (RSI)
Average Directional Index (ADI)
Stochastic Oscillator

Ensure You Have Enough Time

Last but not least, you must be ready to give day trading as much time as you can, especially when you are just starting out. There is a lot to learn here, and you will need to give yourself enough time to learn them all. As mentioned, day trading is a complex concept to fully master, but for those who give it enough time, the financial rewards are often more than worth it.

In truth, you won’t have much time to spare for as long as the market stays open, even after you become an expert. Day trading is full time work by the very nature of its trade model.Nevertheless, independent day traders will often go on to earn significantly more than they did while working their previous job.

The post 4 Day Trading Tips for Beginners appeared first on Enterprise Podcast Network – EPN.

Exit mobile version