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A Beginners Guide To Start Day Trading
In the digital age, it’s now easy to learn day trading and earn some extra income on the side. While a lot of us are still Working From Home, imagine what all you can achieve by sparing a couple of hours during the day and getting familiar with the technical know-how of day trading. And of course, earn from it.
What Exactly Is Day Trading?
In simple terms, day trading is when a trader buys and sells stock on the same day, after monitoring the price fluctuations. For example, if you purchase a stock at 11 AM and sell it off by 2 PM, it will be considered as a day trade. Day traders are active traders typically making decisions based on technical analysis trying to make profit in a short period of time - hour, minute or even seconds. Now that you’re familiar with the concept let’s understand how to start and practice day trading.
Steps To Start Day Trading
Description: Here are some simple steps and tips to get you started on your day trading journey
#1 Understanding The Market
Instead of diving head first and starting to trade right away, it’s imperative to understand the market that you’ll be trading in. Besides knowing the dictionary definition of trading and stock market, you will also need to understand how different events can affect the stock market rates, how various industries respond to the fluctuations and how to anticipate the rapid changes.
#2 Creating A Strategy
Trading strategies are highly speculative. However, the most straightforward strategy is to estimate when a stock price will go up, purchase it, and then sell it at the right time resulting in a good profit margin. The more you practice day trading, the better you will understand the types of strategies you can use to make profits. For this, you will need a simulator where you can practice your strategy in real time, and experience the emotions that come into play while dealing with the market. If you can’t make any money in a simulator, then you should keep practising until you’re confident enough to graduate to a live account.
#3 Set Up A Day Trading Simulator Account
Beginner traders breaking into a typical proprietary trading world lack access to sufficient capital while starting out. Before you start day trading with real money, you can use Full Scale Trading’s simulator to build your knowledge and develop your strategy. With this you can learn at your own pace, understand market trends and fluctuations, know how much to risk and when not to. You can practice until you are confident and as soon as you show consistent profits, you can rank up and graduate to a fully funded trading account. It’s a win-win!
#4 Get Started!
Now that your account is set up on a day trading platform, you’re ready to get out there in the market and begin your proprietary trading journey! Initially you can start with small amounts on your first few trades and slowly build your way up to a pro level.