Start your journey to becoming a day trader with these helpful tips. Learn how to navigate the volatile world of day trading and maximize your potential profits.
Day trading, in the wake of the GME fiasco, is quickly growing in popularity all around the world. It was only two months ago that amateur traders made billions of dollars on the stock market, costing hedge funds billions, and causing a debacle that made it onto the front pages of every newspaper across the world. Day trading, however, is not always up, there are a lot of downs, too! You shouldn’t get into day trading expecting that you are going to make a fortune overnight, and while you can make a lot of money, you have to be careful and patient.
In this article, today, I am going to offer you a few tips to help you out with starting your journey to becoming a day trader. If you have any additional tips and tricks, please leave them down in the comment section below.
Here are a few tips to help you start your journey as a day trader.
Chart Reading
If you are starting out as a day trader, the first thing that you will want to do is learn to read charts. Reading a chart will help you learn trading systems and the difference between when you should get in and when you should get out of a trade. The best chart readers are often the wealthiest. Learning to read charts is not necessarily easy, but it will benefit you massively.
Platform
Finding the right platform is also key to your success as a trader. If you do not find the right platform, you will find that you can never reach your full potential as a trader. In an ideal world, all platforms would be the same, but this is not the case, unfortunately. The wrong platforms can stunt your performance as a trader and limit your ability to buy in on good trades, simply because the stock may not be available, or they may have limited it, as many trading platforms did during the GME situation only a month or so ago.
Bitcoins
If you are interested in trading, you may also be interested in the crypto market. The crypto market is often the point of entry for many aspiring traders, for it is very accessible and runs around the clock, unlike the stock market. Bitcoins are a great investment to make for a beginner. The crypto market fluctuates massively, however, and you could lose everything in an instant, so if you do intend on getting involved in crypto, then you should give it serious thought beforehand and not just blindly walk into it. Bitcoins can be a great investment if you are serious about it.
Patience
When you are trading, patience is a quality you must possess. New traders often make very bad decisions when it comes to trading because they do not have patience. A lack of patience combined with an inability to read charts and poor platforms can destroy a trader. Patience will prove to be your most valuable asset. Equally, you need to know when to pull out, which is just as good a skill as patience. If you hold on for too long you might lose everything, especially on a trade that is going absolutely no-where.
Penny Stocks
Penny stocks are something you should avoid, whether you are a beginner or experienced. Penny stocks often cause people to lose fortunes. While people do, yes, make a lot of money off of penny stocks, they often bring nothing but disruption and cause people to hemorrhage money. Despite what many online traders say, our advice to you is to avoid penny stocks as much as possible. Penny stocks can be devastating to a first-time trader; they can cause you to lose all of your money. Avoid penny stocks and do not listen to anyone who says you should actively pursue penny stocks, for they clearly do not have your best interests at heart.
When You See, It’s Too Late
A rule to follow, generally, is that once the media and other traders are openly discussing the success of stock, you shouldn’t get involved, and ideally want to have already pulled out of it. When stocks become the focus of the media, it is too late for you to get involved. If people had known this during the GME and AMC debacle, they would not have lost as much money as so many people did. When you see it, it is too late.
Thank you for reading our tips and tricks for first-time traders. If you, like many, wish to pursue trading as a side hobby, then we hope that you will have found the information contained within this page useful. There is much more to learn about trading than what we have put here, however, and we do recommend you pursue a course or class.
