Learning how to day trade involves two basic things. There are all the technical details and there are the performance details. The old saying that 90% of life is showing up applies totally when we are learning how to day trade. Really successful day trading is a full time job. Certainly a day trader need not make trades every day but he needs to stay in touch with the market for the stocks, options, commodities, or futures that he trades in order not to miss out on opportunities. All of the technical analysis expertise in the world will not help if the trader is not there when the price of a stock starts to move.
Day trading is trading online. The trader will need to research and purchase computer hardware and software to set up a trade station. This part of learning how to day trade is all about the technical details. The trader will need a secure internet connection and sufficient band width to move huge amounts of data back and forth. The trader will want trading software that includes massive amounts of market data. This data is useful in two ways. First of all in learning how to day trade the trader will spend a substantial amount of time in simulation trading. This is, first of all, to learn how to execute trades, recognize trading patterns, and the like. Secondly, it is to allow the trader to test new trading strategies with real historic data. Day trading is not trying to outguess the market. It is a systematic approach to taking profits from the price fluctuations in individual stocks and indexes.
Learning how to day trade requires the same devotion to detail in learning about stocks, options, commodities and/or futures that all trading and investing requires. Then it requires more. Day trading typically takes advantage of minute to minute market opportunities. It requires a clear plan of action and a rehearsed strategy. It requires research to find the most promising equities to trade and it requires constant attention to the market in order not to miss out on golden opportunities when they arise. This is the part about how 90% of life is just showing up. Traders can certainly trade from time to time. However, the same traders have no right to complain about missing out on big moves in the price of the equity or index that they trade. No one is obliged to research stocks and the like looking for situations that are likely to lead to profit. But, those who do are likely to succeed. It is like the old saying in sports that may look like fast reflexes is simply preparation. Trading Toyota was profitable when the computerized brake issue came out and the company mishandled the recall. Now it is yesterday?s news.
Learning how to day trade takes time and effort. The path to successful day trading can be shortened when a trader goes to school a little. This can be in the form of computer tutorials and simulation trading. It can also be hiring a coach to ?sit in? on trading sessions, help read developing price patterns and add the wisdom of years of experience to the trader?s knowledge base. How to start day trading often has as much to do with deciding to dedicate oneself to the task as it does with learning the details.
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