Day trading, for beginners, can be an intimidating process. The stock market can be a scary place for new traders, and as a profession, day trading is often surrounded by negativity. This negativity, generally, comes from individuals who do not understand the market and how it works. A few comments you might hear, are the following:
“Day trading is essentially gambling”
“You got lucky on that trade”
Any of these sound familiar? You might hear these from a friend, neighbor, boss, teacher, coach, parent, sibling ect.. Surely, these individuals have the best intentions, you should NOT let them discourage your interest in trading. Day Trading requires a specific set of guidelines, which ultimately house your entire profit/loss and risk/reward profile.
You Are The Boss:
You are responsible for clicking, “buy” and you are responsible for clicking, “sell”. Therefore, your success, or failure, in the stock market is in your hands, and it is NOT impossible. As a new day trader, I would encourage you to focus on some key fundamental elements of your strategy:
- Create a strategy around profits being greater than losses
- Create a risk/reward ratio which will house your maximum loss willing to take
- Your reward should be much larger than the amount risking
- Set rules which you will NEVER break
- Create daily plans
- Create a routine
- Do not over analyze your charts. Keep your technical analysis (Chart reading) simple to avoid analysis paralysis
- Paper trade to perfect your strategy
- Paper trading is simulated trading which allows investors, or traders, to practice trading with fake money. The paper trading platforms react identical to real stock market
These are a few ideas to help you create your master plan of becoming a highly successful trader. Your daily plan should drill down to, entry points, exit points, maximum loss willing to take, and estimated profits.
How To Start:
If you do not know where to begin, try our trading course. It’s a beginner friendly, video based, educational course designed to help you become a more successful, consistent, & profitable trader while appropriately managing your risk.
We hope to see you in the course or in our live stock market chat room!
The chat group is a community of like-minded traders who communicate and help each other succeed. After the course is purchased, you will receive the benefit of 1 on 1 mentorship during your learning process. However, join the chat group to see how others, just like you, have found success, as we discuss live market updates and ideas.
Remember, as a day trader you are your own worst enemy. It is You Vs: You. Can you beat yourself? Do you have what it takes to succeed?
Best of luck & happy trading!