Tuesday, May 30, 2023

How a Coach Can Help You in Stock Day Trading

What is stock day trading?

Sophisticated investors buy and sell stocks on the same day. Popularly, this is called intraday trading.

Is day trading not gambling?

Online stock day trading is not gambling as here you can predict the market movements using statistical tools. If you take a proper training on stock day trading, you can reduce your risk based on mathematical analysis unlike trend working in any gambling game.

Don’t look at day trading as a means to ‘get rich quick’ or ‘make millions overnight’.

stock investment preparation

One. You need to do some homework and enter the market with a clear day trading strategy and idea for stock picking.

B. Online stock trading is the best thing to do and the presence of online brokers and brokerage firms makes day trading easier.

C. Find the broker with the lowest commission.

What do you need to do to consistently beat the market?

1. If you are new, always buy when the market is up and sell when it is down. You can do the opposite but it’s complicated. This is called trading in the right direction.

2. You should be ready to bear the loss considering it as a business. This means that you should decide on your selling price beforehand. If you get your desired profit, exit the deal or if you book a loss, book the loss and prepare for the next one. Control your fear and greed.

3. Follow the age-old practice of not putting all your eggs in one basket. Investing in blue chip as well as mid cap with high momentum will help you minimize huge losses and earn higher returns.

4. Make an initial investment and always save some part of the profit as investment.

5. Loss is a part of any investment. Have a modest initial target of beating the market by 10% per annum. First try to be an average investor.

Essential Tools for the Day Trader

Whether you are a beginner, or an experienced day trader, you need the following tools.

1. Computer with Windows XP

2. Internet access with at least 256Kbps down and 128Kbps up with unlimited traffic and connection time

3. Online Brokers

4. Charting and trading software like Sierra Chart

5. Access to authenticated market data

My personal suggestion for all new day traders in share markets

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