Day Trading Tips for Newbies

By Aleksandra Wilson
2 min read August 11, 2021

Basics of Day Trading 

If you’re willing to dive into the world of day trading, there are some important tips to follow to achieve your goals. It all comes down to setting the right software and equipment. Also, how much you need to start, what to trade, when to do it, risk management, and building an effective strategy.

How to Choose the Market?

The first thing to choose is the market where you want to trade. It would be best to keep in mind that one market is not better than another; it’s all about what operations you choose. For example, the market of forex requires the least amount of capital for Day Trading. Although you can start with only a few hundred dollars, it is recommended to reach at least $500. Stocks require at least a couple of thousand dollars a day, making them the most intensive option. Requiring more capital doesn’t mean that a market is better or worse than another, your decisions should depend on your capabilities.

Day trading
Forex
Stock market
Traders

What About the Equipment and Software?

There are some essential tools needed for Day Trading, including a computer or laptop. Although it is preferable to have two monitors, it’s not mandatory, but you must have a computer with enough memory and a fast processor to run the trading programs. A reliable and fast internet connection is also needed and a trading platform adapted to the market and style of transactions. 

Forex
Stock market
Traders

The Day Trading

Your strategies as a trader must be focused on consistency to act simultaneously during the day. It is common in Day Trading to find sessions of two or three hours a day. The best hours for stocks are the first after opening and the last before closing. Trading occurs 24 hours a day for the currency market, but the highest volatility occurs between 6:00 and 17:00 GMT.

Conclusion 

Knowing a strategy does not translate into a successful implementation since no two days are the same in the market. It takes the practice of at least three months before accessing real capital. After meeting at least those three months with a good demo performance, it is advisable to switch to live trading. The focus should be on a single strategy, and you only trade in the market you chose for as long as you have decided.

Load more sync