Day Trading For Dummies - Part 2
Welcome to more day trading for dummies. Today we’re going to move into day trading for beginners. Find out how developing your own key day trading strategies will improve your day trading techniques. Also find out how to make those strategies specific and avoid losing money!
Day Trading for Beginners – Avoid the Traps!
Don’t fall into the trap of liking everything you hear about something when you know nothing about it. Everything sounds good when you know nothing. This is a trap. Find out everything about that something and then you’ll be able to make an informed decision about the product.
Create Your OWN Headspace
As a beginner it’s also very important to have a separate computer dedicated to your day trading. It is part of you preparation and grooming for the day. You need to have your own computer separate for day trading for your ‘day trading mindset’. This is also one of the good day trading strategies as it mentally prepares you for the day of trading ahead.
Don’t go in with a Cluttered Head! Have some Day Trading Strategies
It’s important to have a clear and concise day trading strategy that you can use every day. Have in your mind that day trading for beginners is no different to any other business for beginners therefore you need a business plan. Have day trading strategies to show how you’re going to make your money and keep it coming in.
Eighty percent of day trader’s lose money and eighty percent of businesses go bankrupt in their first year. It’s all business. Do not look at it as a game or a daily event. As in any other business, do not solely focus on the possible rewards that lie ahead.
Focus on building the business slowly and securely. Failure to prepare yourself properly may mean that you’ll end up in that eighty per cent and there won’t even be any day trading for dummies for you! There are many day trading strategies out there and it’s important to find your own.
What you want from a strategy is for your day trading strategy to be very clear as in, “if this specific thing occurs, this is my specific path of action” and do not deviate from this pan. Build this strategy with every positive or negative experience in paper trading until you feel it’s perfected then introduce it into your day trading and swing trading.
Your day trading strategy also needs to include a plan, where are your stops going to be? Do not be pondering half way through trading what the best option is, you know your stock you know what you want to do, go in there, buy sell and get out again, hopefully on top.
Also make sure you have a clear entry and exit signal, this simply means when to get yourself in a position and when to remove yourself from it. The entry needs specific conditions, like when X, Y and Z come together I’ll dive in. Not before, and not after! Your exit needs to be just as clear. Do not make the fatal mistake of being general.
Simplifying your entry and exit will cause you to lose money as there are too many variables. Keep your strategy. Often rookies will make the mistake of changing a strategy before having perfected it or abandoning it all together. This will also lose you money.
Stay calm and collected remember it’s just a business and do not change your strategy half way through day trading. When day trading for beginners start off with liquid stocks, stocks that are easy to get in and out of.
Volatile stocks are harder to get out of once you are in and whilst the margin for profit may be higher the same goes for errors and loss, you stand win a lot but you also stand to lose a lot which make trading stressful which open up your margin for error.
A Logical Move for an Illogical Market
Doesn’t make sense does it? That’s because logic and day trading are two different things. Stock markets, especially day trading markets are illogical. Some traders believe that strategy is all you have got in the end. This is when your own instincts and interpretations should kick in and take you the rest of the way if you listen to both.
Someone else may buy up big on a certain stock due to their interpretation of the market and you may hold back, you may win out in the end or you may lose out on making a fortune but there will be another time don’t ever think that this time is your last or best time to make money off the stock market, or this is your big break.
It is a business and it is an interpretive, illogical market. Day trading for dummies helps you to trust your own instincts and knowledge and follow them rather than every body else advice...
Day Trading for Beginners – Avoid the Traps!
Don’t fall into the trap of liking everything you hear about something when you know nothing about it. Everything sounds good when you know nothing. This is a trap. Find out everything about that something and then you’ll be able to make an informed decision about the product.
Create Your OWN Headspace
As a beginner it’s also very important to have a separate computer dedicated to your day trading. It is part of you preparation and grooming for the day. You need to have your own computer separate for day trading for your ‘day trading mindset’. This is also one of the good day trading strategies as it mentally prepares you for the day of trading ahead.
Don’t go in with a Cluttered Head! Have some Day Trading Strategies
It’s important to have a clear and concise day trading strategy that you can use every day. Have in your mind that day trading for beginners is no different to any other business for beginners therefore you need a business plan. Have day trading strategies to show how you’re going to make your money and keep it coming in.
Eighty percent of day trader’s lose money and eighty percent of businesses go bankrupt in their first year. It’s all business. Do not look at it as a game or a daily event. As in any other business, do not solely focus on the possible rewards that lie ahead.
Focus on building the business slowly and securely. Failure to prepare yourself properly may mean that you’ll end up in that eighty per cent and there won’t even be any day trading for dummies for you! There are many day trading strategies out there and it’s important to find your own.
What you want from a strategy is for your day trading strategy to be very clear as in, “if this specific thing occurs, this is my specific path of action” and do not deviate from this pan. Build this strategy with every positive or negative experience in paper trading until you feel it’s perfected then introduce it into your day trading and swing trading.
Your day trading strategy also needs to include a plan, where are your stops going to be? Do not be pondering half way through trading what the best option is, you know your stock you know what you want to do, go in there, buy sell and get out again, hopefully on top.
Also make sure you have a clear entry and exit signal, this simply means when to get yourself in a position and when to remove yourself from it. The entry needs specific conditions, like when X, Y and Z come together I’ll dive in. Not before, and not after! Your exit needs to be just as clear. Do not make the fatal mistake of being general.
Simplifying your entry and exit will cause you to lose money as there are too many variables. Keep your strategy. Often rookies will make the mistake of changing a strategy before having perfected it or abandoning it all together. This will also lose you money.
Stay calm and collected remember it’s just a business and do not change your strategy half way through day trading. When day trading for beginners start off with liquid stocks, stocks that are easy to get in and out of.
Volatile stocks are harder to get out of once you are in and whilst the margin for profit may be higher the same goes for errors and loss, you stand win a lot but you also stand to lose a lot which make trading stressful which open up your margin for error.
A Logical Move for an Illogical Market
Doesn’t make sense does it? That’s because logic and day trading are two different things. Stock markets, especially day trading markets are illogical. Some traders believe that strategy is all you have got in the end. This is when your own instincts and interpretations should kick in and take you the rest of the way if you listen to both.
Someone else may buy up big on a certain stock due to their interpretation of the market and you may hold back, you may win out in the end or you may lose out on making a fortune but there will be another time don’t ever think that this time is your last or best time to make money off the stock market, or this is your big break.
It is a business and it is an interpretive, illogical market. Day trading for dummies helps you to trust your own instincts and knowledge and follow them rather than every body else advice...