Day trading requires a lot of experience and patience, hence young stockbrokers should tread carefully. To make your professional life easy, we give you 5 effective Day trading strategies for beginners. #ThinkWithNiche
Day trading is the act of buying and selling stocks over the course of a single day. A stockbroker does multiple dealings throughout the day, navigating price moves carefully. But all of it can be quite intimidating for a new stockbroker. Dealing with stocks is a tricky thing; you need a well-thought-out strategy otherwise you’ll end up losing some serious money.
However, there are certain particular days for trading practices or strategies that a newbie can adapt to navigate through the early days at the stock market. These strategies aren’t scientific or anything; they have simply been shared by experienced stock brokers. So it goes without saying that they shouldn’t be considered without giving any thought. If you are a young stockbroker, take the following day's trading strategies with a pinch of salt and use your own intellect while implementing them. Stock Trading is a serious business so a person needs to be careful about the steps he/she takes in the trading market. Now let’s dive into the 5 Day trading strategies for young stockbrokers-
1. Do Your Homework
A stock trader should have knowledge about everything related to stocks and the stock market. Simply knowing basic trading procedures isn’t enough, one needs to have complete knowledge of all the news, events, and updates around stocks. It’s better to make a wishlist of stocks you are interested in, stocks you want to sell and buy, and basic information about companies.
2. Capital Assessment
For day trading you will have to set aside a certain amount and decide how much money you are willing to risk on a single trade. This is hugely important as it will potentially decide how much money you may lose over the course of a single day. Stock trading is all about risks, but these risks shouldn’t be random, rather they should be highly calculated. Set aside a surplus amount in your trading account with which you can trade on a daily basis.
3. Set Aside Time, too
As the name itself suggests, day trading requires a whole day of work. Hence go into it only if you have that much time to invest. Day trading is a tricky business and requires a lot of planning and hassle, hence it goes without saying that it’s a stressful job.
4. Start Small
As a beginner, it’s wise and rewarding to only focus on one or two stocks at a time. Stock trading requires a lot of finesse which you will slowly learn but you must be patient. At first, just deal with one or two stocks at a time. You can start trading fractional shares and invest smaller amounts.
5. No Penny Stocks
For a young stockbroker, penny stocks are a strict no. Penny stocks are attractive from afar because they are at low prices. But that doesn’t mean they aren’t risky. Penny stocks are often illiquid and the chances of hitting a jackpot are too few. Unless you have done proper research and know what you are doing, it’s safe to stay away from penny stocks for the time being.