Top 5 Day Trading Strategies
A lot of people are taken aback when they find out that some statistics declare that over eighty percent of day traders actually LOSE money. Statistics also show that about eighty percent of new businesses go bankrupt in one of the first two years of trading!
That is why a clear and well established trading strategy is CRUCIAL in day trading! Without a particular system or strategy in place, the more likely you are to lose your hard earned money! Are you interested in being a part of that twenty percent that ARE making money from day trading? How does working from the comfort of your own home sound? Pretty good huh? So have you thought getting involved with day trading?
You do not have to do any recognized day trading courses to begin day trading – but it is advisable to learn the basics and have a few day trading strategies up your sleeve before getting heavily involved. Read through these day training strategies and use as a day trading guide to find out what you can do to ensure a successful day trade!
Day Trading Strategy # 1 Day Trading Entry and Exit Signals
A good day trading strategy should incorporate both an entry signal and an exit signal. In essence, it means that you have a strategy that recognizes when to get into a particular position and when to get out of it! There are three basic things that have got to be thought about when developing and creating a good exit strategy.
To start with, the first question you NEED to ask yourself is, "How long do I plan on staying in this trade?" Next, you should be asking, "What is the maximum risk that I am willing to take?" And lastly, ask yourself, "When do I want to get out?!" Risk is a very imperative factor when it comes to day trading.
To establish your level of risk, really means you are determining how much you can afford to lose! This will determine the length of your trade and the type of stop-loss that you should use.
Day Trading Strategy # 2 Have a Stop Loss Plan!
A stop loss is a must in day trading. Before you enter a trade, it is VITAL to know exactly when to get out if the trade goes against you. Stop-losses, or sometimes simply called ‘stops’, are directions you can give to your broker to instruct them sell automatically when your stock or money reaches a certain point, or perhaps a certain price! When this point has been reached, the stop-loss will straight away be converted into a market order to sell!
These stop-losses can be quite beneficial in decreasing your losses in case the market moves swiftly against you!
Smart Money Management: Remember that smart money management does not only require risking a suitable sum of money on every trade. It also requires running a winning trade from the beginning to the end.
Day Trading Strategy # 3 – Take Profits Strategies
Take-profit, sometimes known as ‘limit orders’ are quite like stop-losses, in that they are changed into market orders to sell when the point (that you have directed your day trading broker to sell) has been reached. In addition, take-profits also adhere to the same rules as stop-loss, in terms of implementation in the NASDAQ, NYSE, or AMEX exchanges.
However, there are two main differences. There is no "trailing" point in a good take-profit strategy, because if not, you would by no means ever be able to realize a profit! Secondly, the exit point needs to be set greater than the current market price, instead of less than the current market price.
Day Trading Strategy # 4 – Keep it Simple!
When day training strategies have too many confusing conditions, a newbie in the day trader market could easily get perplexed. And if you are confused, chances are that you will have a lower chance of actually executing a successful day trade!
Day Trading Strategy # 5 – Leave your Emotions out of it!
To be a triumphant day trader, you NEED to leave your emotions out of the business of day trading! If you make decisions out of ANGER, or maybe even FEAR, then you will most likely encounter much more loss than profit!
Bear in mind that making day trading decisions out of HAPPINESS could also be hazardous! Every now and then these emotions can give a false sense of what you can actually achieve.
So, at all times you should be making your decisions based on market data and market trends, not your emotions! All of these things will ultimately lead you to becoming a better trader with much more potential.
So, if you can take these day trading strategies and use them as a day trading guide, you shouldn’t need to do many day trading courses to become a master of day trading!
That is why a clear and well established trading strategy is CRUCIAL in day trading! Without a particular system or strategy in place, the more likely you are to lose your hard earned money! Are you interested in being a part of that twenty percent that ARE making money from day trading? How does working from the comfort of your own home sound? Pretty good huh? So have you thought getting involved with day trading?
You do not have to do any recognized day trading courses to begin day trading – but it is advisable to learn the basics and have a few day trading strategies up your sleeve before getting heavily involved. Read through these day training strategies and use as a day trading guide to find out what you can do to ensure a successful day trade!
Day Trading Strategy # 1 Day Trading Entry and Exit Signals
A good day trading strategy should incorporate both an entry signal and an exit signal. In essence, it means that you have a strategy that recognizes when to get into a particular position and when to get out of it! There are three basic things that have got to be thought about when developing and creating a good exit strategy.
To start with, the first question you NEED to ask yourself is, "How long do I plan on staying in this trade?" Next, you should be asking, "What is the maximum risk that I am willing to take?" And lastly, ask yourself, "When do I want to get out?!" Risk is a very imperative factor when it comes to day trading.
To establish your level of risk, really means you are determining how much you can afford to lose! This will determine the length of your trade and the type of stop-loss that you should use.
Day Trading Strategy # 2 Have a Stop Loss Plan!
A stop loss is a must in day trading. Before you enter a trade, it is VITAL to know exactly when to get out if the trade goes against you. Stop-losses, or sometimes simply called ‘stops’, are directions you can give to your broker to instruct them sell automatically when your stock or money reaches a certain point, or perhaps a certain price! When this point has been reached, the stop-loss will straight away be converted into a market order to sell!
These stop-losses can be quite beneficial in decreasing your losses in case the market moves swiftly against you!
Smart Money Management: Remember that smart money management does not only require risking a suitable sum of money on every trade. It also requires running a winning trade from the beginning to the end.
Day Trading Strategy # 3 – Take Profits Strategies
Take-profit, sometimes known as ‘limit orders’ are quite like stop-losses, in that they are changed into market orders to sell when the point (that you have directed your day trading broker to sell) has been reached. In addition, take-profits also adhere to the same rules as stop-loss, in terms of implementation in the NASDAQ, NYSE, or AMEX exchanges.
However, there are two main differences. There is no "trailing" point in a good take-profit strategy, because if not, you would by no means ever be able to realize a profit! Secondly, the exit point needs to be set greater than the current market price, instead of less than the current market price.
Day Trading Strategy # 4 – Keep it Simple!
When day training strategies have too many confusing conditions, a newbie in the day trader market could easily get perplexed. And if you are confused, chances are that you will have a lower chance of actually executing a successful day trade!
Day Trading Strategy # 5 – Leave your Emotions out of it!
To be a triumphant day trader, you NEED to leave your emotions out of the business of day trading! If you make decisions out of ANGER, or maybe even FEAR, then you will most likely encounter much more loss than profit!
Bear in mind that making day trading decisions out of HAPPINESS could also be hazardous! Every now and then these emotions can give a false sense of what you can actually achieve.
So, at all times you should be making your decisions based on market data and market trends, not your emotions! All of these things will ultimately lead you to becoming a better trader with much more potential.
So, if you can take these day trading strategies and use them as a day trading guide, you shouldn’t need to do many day trading courses to become a master of day trading!