What has attracted you to day trading? The need for extra income, seeing a successful friend in day trading, or watching all those flashy YouTubers? Day trading is a venture that is attracting millions of people around the world in the turbulent economic times. This is one venture where you can make money every day or lose millions overnight. It is an exciting journey from starting as a beginner trader to a hedge fund whale. A good number of people become successful at it by willing to learn the ropes. There are no shortcuts to the big money.
Get the concept first. Day trading is taking a trading position in a market, and closing on the same day. A good example is buying Bitcoin at $8500 and selling the same day at $8700. The good thing about day trading is that you make money as long as price moves in your chosen direction.
#1 Pick your poison
Forex, shares, cryptocurrencies, and commodities are the most popular instruments to trade. Your choice could be influenced by your background; a coffee marketer could find it easier to get into commodities, while a banker could gravitate towards forex. But remember that you can learn anything as long as your mind is open to it.
#2 Learn the basics
Just like any other industry, day trading has unique lingo such as to ask/bid, float, support, resistance, bear, bull, indicators, support, resistance, and much more. Day trading markets operate in the same basic concept whichever instrument you are trading. Learning will involve working extensively with a demo account.
#3 Choose a broker
This goes with #3. Your finance broker will be very crucial because he will be handling your money (placing and closing trades, processing your deposits and withdrawals). A good broker should offer an efficient trading platform (software) that allows you to trade on your computer/laptop as well as smartphones. Ideally, your broker aids in your learning by providing a demo account and learning material for step #3. Visit this site for more information.
#4 Develop a strategy
You will hear of swing traders, reversal traders, and trend traders. Begin by choosing a strategy that you have tried and tested while working with the demo. Ideally, you should make your first real money trade after 6 weeks of learning, testing, and polishing your strategy. Your strategy should also include money management techniques.
#5 Rinse and repeat
Like any other craft, you become better in day trading as you gain experience from your profits and losses. You become better at picking successful trades and growing your money like a pro!