When getting into the stock market you hear a lot of jargon being thrown around. And one of the most exciting ones that come up is “Day Trading”. It’s spoken of in brash tones by people who seem knowledgeable in the subject. But what is Day trading? On paper, it’s actually quite simple. A day trader is someone who essentially buys and sells a financial instrument over the course of 24 hours (sometimes multiple times a day), And this can make you a lot of money if done correctly. But if done with too little information it can be incredibly risky and even akin to gambling.
If you’re new to the stock market and investing in general, you might be fascinated by it. I know I was. However, you might be hesitant to start investing money because you just don’t know enough about it. If this sounds familiar to you, you might want to check out the property fund. The team is comprised of very experienced professionals who are hell-bent on getting you the best results possible.
One of the most important things when day trading is to adopt the philosophy that knowledge is power. A day trader is often taking on tremendous risk by betting large sums of money on a short term, and seemingly unpredictable movements of the stock market, therefore they need to be constantly updated on market information, and events that affect the stocks they trade such as interest rates, taxations, etc.
You will also need to set aside time and capital. Day trading isn’t something that you can do as a hobby. If you want to make real financial gain from it and maximize your chances of making money (you will need to do this) you will need to give up your time as well as capital that you more or less aren’t afraid to lose, because the chance that you could lose that money isn’t exactly small.
Speaking of small, you will want to start small as well. Starting small gives you heaps of advantages. First, it allows you to learn the market and all about how it works while risking little money. After all, you wouldn’t trust your child with a loaded gun, would you? If they show an interest in firearms you would get them a toy gun, or a bb gun, until they were smart enough to use the real thing. The same applies to you starting out in the stock market. Stay away from big trades until you’re good enough to play in the big leagues.
You will also want to be realistic about how much you’re going to make. Let’s be real here. Most day traders lose up to 50% of their trades, but the experienced ones make more than they lose, and that is where you want to get up to. And the best way to do that is to make sure that you always stay cool, calm, and collected. By reacting emotionally to market movements, you are likely to make mistakes. So, there we are, a few tips to help you become the best day trader that you can be.