Day Trading For Dummies - Part 4
Another day gone by and the financial market is up in the air, again. Would it really be a good time to start day trading? Well, there couldn’t be a worse time! Day trading for dummies will show you how to become a day trader and make money, even in these unsound times.
With lots of patience and lots or knowledge, your spare time during the day could turn into your next cash crop! Day trading for dummies, come on, it’s not that hard! The book “Day Trading for Dummies’ is also going to be a helpful resource as you learn to become a day trader.
Knowledge is the Key!
It’s so important when you’re just starting out to build your knowledge of the market.
Do some day trading courses, don't just buy the software (yes you need software) and expect to be able to jump straight in with only a little market knowledge. That’s not called day trading, that’s called throwing your money away!
You must read, read, read! Every financial review, paper or website you can find. Drain every stock exchange, and stock trading resource you can find! You will thank yourself for it, when eighty percent of the new traders around you come crumbling down and you are still standing at the end!
If you can learn to be intuitive with these illogical markets then you will have a large head start when it comes to day trading. Learning to breathe in time with the market and developing a sound understanding of all the stock markets and exchange is necessary in helping securing you financial future in the stock market!
Know Your Strategy!
Day trading is a risky business and it is important for you to learn to be able to calculate your risks in plain, easy to understand, and extremely specific terms, such as “if I do X then I could loose Y”. Know your potential reward but also know your potential loss. Do not be superstitious; you will not ‘hex’ your money if you weigh up your risk. Blind positive thinking does not get you very far in this game.
It is equally important to have a clear entry and exit strategy similar to the previously mentioned strategy. Day trading strategies are all about calculating your risks, protecting your interests and getting the best return for your short lived investments. Remember day trading is an extremely volatile market and it is because of that volatility the gains are so huge, but it also means the losses are just as big or bigger.
Try not to get emotionally involved, or caught up in what can see to be the ‘fun’ of it all. You are not hanging out in Vegas, you are day trading. It is pure and simply another business and can be a highly profitable one if you have day trading strategies in place. Day trading strategies can also help you find a sense of calm.
Getting caught up in the flurry of trading is all part of it, but your day trading strategies will be your life line, the clearer they are, and the more simple they are the more they will help you make the right decision when it counts.
The Day Trading Charts
Day trading charts are your friend. They are there to help you make the decision to buy or sell. They can help you watch your markets and decide how or when you will trade. Day trading charts come in a few different styles to help you make your decision and many different time frames depending on which time and how you need to refer to your markets.
Day trading charts are mainly presented in candlestick, line and bar charts. They all have the same information; some are easier and better to read than others depending on the person. The time frames also come in ticks, time and volume, this time frame shows how much information the chart will represent.
Charts show at what time trading opened, what the highest prices during trading was, what the lowest price during trading was and how the markets closed. As you can tell it is essential that all day traders know exactly how to read day trading charts. A little bit of maths goes a long way!
Day Trading, is it Right for you?
If you have a keen sense of adventure, you’re capable of keeping your money separate from emotions, you can read charts and have a keen eye for the markets as well as a fabulous instinct for them then yes this is right for you! You need to dedicated and patient whilst you are learning about day trading. It is a long process to even get to paper trading so if you want to be in it for the longer haul, the rewards can be very lucrative.
With lots of patience and lots or knowledge, your spare time during the day could turn into your next cash crop! Day trading for dummies, come on, it’s not that hard! The book “Day Trading for Dummies’ is also going to be a helpful resource as you learn to become a day trader.
Knowledge is the Key!
It’s so important when you’re just starting out to build your knowledge of the market.
Do some day trading courses, don't just buy the software (yes you need software) and expect to be able to jump straight in with only a little market knowledge. That’s not called day trading, that’s called throwing your money away!
You must read, read, read! Every financial review, paper or website you can find. Drain every stock exchange, and stock trading resource you can find! You will thank yourself for it, when eighty percent of the new traders around you come crumbling down and you are still standing at the end!
If you can learn to be intuitive with these illogical markets then you will have a large head start when it comes to day trading. Learning to breathe in time with the market and developing a sound understanding of all the stock markets and exchange is necessary in helping securing you financial future in the stock market!
Know Your Strategy!
Day trading is a risky business and it is important for you to learn to be able to calculate your risks in plain, easy to understand, and extremely specific terms, such as “if I do X then I could loose Y”. Know your potential reward but also know your potential loss. Do not be superstitious; you will not ‘hex’ your money if you weigh up your risk. Blind positive thinking does not get you very far in this game.
It is equally important to have a clear entry and exit strategy similar to the previously mentioned strategy. Day trading strategies are all about calculating your risks, protecting your interests and getting the best return for your short lived investments. Remember day trading is an extremely volatile market and it is because of that volatility the gains are so huge, but it also means the losses are just as big or bigger.
Try not to get emotionally involved, or caught up in what can see to be the ‘fun’ of it all. You are not hanging out in Vegas, you are day trading. It is pure and simply another business and can be a highly profitable one if you have day trading strategies in place. Day trading strategies can also help you find a sense of calm.
Getting caught up in the flurry of trading is all part of it, but your day trading strategies will be your life line, the clearer they are, and the more simple they are the more they will help you make the right decision when it counts.
The Day Trading Charts
Day trading charts are your friend. They are there to help you make the decision to buy or sell. They can help you watch your markets and decide how or when you will trade. Day trading charts come in a few different styles to help you make your decision and many different time frames depending on which time and how you need to refer to your markets.
Day trading charts are mainly presented in candlestick, line and bar charts. They all have the same information; some are easier and better to read than others depending on the person. The time frames also come in ticks, time and volume, this time frame shows how much information the chart will represent.
Charts show at what time trading opened, what the highest prices during trading was, what the lowest price during trading was and how the markets closed. As you can tell it is essential that all day traders know exactly how to read day trading charts. A little bit of maths goes a long way!
Day Trading, is it Right for you?
If you have a keen sense of adventure, you’re capable of keeping your money separate from emotions, you can read charts and have a keen eye for the markets as well as a fabulous instinct for them then yes this is right for you! You need to dedicated and patient whilst you are learning about day trading. It is a long process to even get to paper trading so if you want to be in it for the longer haul, the rewards can be very lucrative.