Day trading refers to short time market positions, where the trader opens and closes a position the same day. To be precise, trading is not that complicated once the simple and easy to follow strategies are grasped to anticipate moves in associated with market.
Top 10 Golden Intraday Trading Tips for Beginners
If you are a beginner, then it is high time to follow some easy to follow secrets to fetch high benefits from day trading. They have been mentioned in a nutshell as under:
- Choosing entry points carefully – It is better to look ahead towards scenarios where both supply and demand remain in a drastically imbalanced state. In case supply is near exhaustion, prices may go higher in case no willing buyers exist. In case of excessive supply and hardly any willing willing buyers, prices may go down.
- Setting up price targets prior jumping inside – Prior making a long position purchase, it is better to decide the amount of profit acceptable along with stop-loss level in advance. It enables in limiting potential losses thus keeping everybody away from becoming greedy.
- Insisting on risk reward ratio – It is better to have a proper understanding of risk-reward ratio as it promotes small loss and win big property. After gaining enough experience, risk-reward ratio that is as high as 3:1 or higher seems to be attainable.
- Being patient – After a deep research, you will get to learn that successful traders do not trade daily. They do not execute trade until and unless they get into touch with something viable. Better to be patient enough to plan your trades prior landing on the market.
- Being disciplined enough –It is preferable to set a trading plan and remain stick to it. Rather than being greedy to become rich against a single trade, it will be better to set a trading plan under an expert surveillance. Impulsive behavior may prove to be the worst enemy.
- Avoid being too much afraid – It is better to carry on with the task by keeping eyes in an open state. It is possible to gain success by remaining highly disciplined at the time of working on the plan. This will automatically lead you towards placing of the order.
- Trading with money that will not cause any pain – It is advisable to day trade with that amount of money that you may afford to lose. Big bucket money needs to be invested in a highly conservative manner and in longer duration positions. As a beginner it will be better to go with little bucket of risk capital.
- Not to risk too much capital against a single trade – It is good to set a percentage of total days trading budget from 2-10% on the money you have. Exceeding the size of position is not preferable. Else, there are chances that you may miss out better opportunities.
- Not limiting day trading to stocks only – Unlike stocks; forex, options and futures are considered to be three asset classes that contribute in displaying of volatility along with liquidity. In order to fetch appealing opportunities, remaining inside boundary of stocks only may lead towards loss.
- Trying to learn from experience – One must not kick himself in case occasional trade does not go on his own way. Instead, following of established day trading rules need to be confirmed. One must learn from his experience as well.
By following the above mentioned golden trading tips, you as a beginner may land yourself on the battling ground.