Day Trading Strategies

Every one who stepped into the field of trading has a dream of becoming a successful day trader. But in the beginning the new commands lose their hard-earned capital very soon just because of practicing without proper learning. Here I am going to mention 10 day trading strategies for beginners that will definitely help you to find the way for day trading for beginners;

What is Day Trading ?

Day trading is the process of buying and selling of trading instruments so quickly during the same day. In other words you can say if you buy any instrument in the stock market and sell the same on the same day or sell the instrument and buy the same on the same day then you are doing a day trading.

Why to do Day Trading?

Day trading provides an extra edge to the traders over those who hold the position over the night in terms of risk and uncertain volatility. So people prefer to trade on an intraday basis and square off their position on the very same day to avoid the risk involved due to uncertainty for the next day.

What you need first to start with Intraday / Day Trading or prerequisite of Intraday Trading

Selection of Good Broker Service

To begin with intraday trading you must have your reading as well as demat account with an efficient broker who can manage the high quality with high volume traits quickly and efficiently.

Basic Knowledge About Trading

You must also have good knowledge of chart reading that is technical analysis and a little fundamental also so that you can decide your traits in your direction.

Computer System /Smart Phone with good Quality Internet connectivity

You must have a computer system where you can read charts and you can place your orders simultaneously or there or on your mobile phones. You must also have good quality internet service to please your order on time as per your analysis.

10 Day Trading Strategies for Beginners

Here I will discuss 10 day trading strategies for you to become a successful Day Trader;

01. Learn and take Basic Trading Education first

Before starting the trading journey you must have the basic knowledge of the stock market and the basic education about the system of trading. Learn first about  how to use different techniques to analyze your trade. For This you can read books, can opt for any reliable tutorial classes and for practical learning you can begin with small account size.

02. Research and Decide your Trading Setup

To become a successful day trader you must have a good knowledge of technical analysis. You should research and define your trading setup and stick it for sometime if you are a beginner.

03. Begin with Liquidity

Start trading in most liquid stocks first. You can choose the top liquid stocks from the list of nifty 50 Bank Nifty etc. Liquid stocks we will not face the problem of feeling your orders. Avoid playing with penny stocks please!!!

04. Set Reasonable and practical Take Profit target

Don’t even think of becoming a millionaire over the night by trading. If you think so you will see your capital wiped out in no time. As the exchange data reveals that 90% traders lose their capital within 1 year. Be realistic while setting up, take profit targets. Always follow your risk reward ratio. You can trail your stop loss as your trade moves in your favor.

05. Always follow Disciplined Approach

Follow your rules religiously with a full disciplined approach no matter what your trade is doing. For example if you have set your stop loss don’t increase it if the trade is going against you. If you have set your take profit target then try to take that profit if the target is achieved. Can also learn how to trail your stop loss and capture the all move with the due course of time with experience. What I mean to say is that you must always maintain discipline in the market.

06. Control over your Emotions

Set your emotions aside when you are in the market and just behave like a robot. If you have decided the stop loss then you must respect it and make an exit if the stop loss is hit. Don’t increase this continuously in hopes that the move will reverse from xyz point. If you are wrong in your analysis, accept it. Don’t be a victim of fear, free, fear of missing out (FOMO) etc.

07. Limit your Number of Trades

Never ever do over trading is your stop loss hit in all the number of traits what you had decided. If you hit two or three stop losses depending upon your capital, stop it for the day. the next day will come up with opportunities. 

08. Move with the Market trends and Don’t fight with the Market

Don’t try to fight with the market if you are wrong in your analysis. Profit and loss are just part of the trading process but never fight with the market as you are definitely going to lose this.

09. Limit your screen time during the Live Market

Author of the famous book ‘Trade Like Stock Market Wizards’ Mark Minervini mentions in his book that you should always limit your time in the live market. Don’t take the market to your home.

10. Be Cool in Placing Order / Have Patience

Be patient and don’t jump on your trading platform as soon as the market opens and bombard your orders one after one. Give your tearing time, analyze it on your parameters and set rules before placing orders.

Other Point to Remember

Start from  the Small Capital

Initially you must start from the small capital by taking the small take profit or gates and no doubt small losses also. Once you practice in the live market and become habitual of picking up good traits then increase the size slowly. This will boost your confidence and he will be able to pick the best out of best with your consistent experience.

Limit your Risk per trade

Always follow the risk management rules and your risk on per trade must not be more than 1 or 2% of your capital. By doing this you will be able to sustain in the market for the long run. If you are sustained then definitely you will be making profits very soon.

Be Quick in your Decisions

In Intraday trading  you must have enough patience to wait for the good trades and simultaneously you must take quick decisions if your trade is not moving in your direction or moving against you. No time to quit from that trade you must have weakness in your attitude and decision making ability.

Be connected with News and Events

Be connected with the market and news and events around the world. As you are trading during the day only and these news and event can have a great impact on your stock prices.

Conclusion

So with the above mentioned 10 day trading strategies you can improve your trading skills.

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