It’s easy to find yourself feeling excited by the idea of earning money rapidly in the stock market. However, in a volatile marketplace, it can be difficult to tap into the day trading strategies that other investors have used to add to their nest egg or boost their retirement portfolio. 99% of day traders will struggle to get ahead when the market isn’t favorable, and if you’re new to the game, your chances of success will be slim. Rather than jumping in head-first and losing your money, it’s best to make sure that you know how to day trade, and when to start trading first. Here are a few tips to help get you on your way.
Easing into your Day Trading Strategy
You don’t have to be a master trader from day one if you’re interested in the day trading market. Instead, you can start off with paper trading or simulated stocks to help you learn more about the marketplace and how stocks work. When you do feel a bit more comfortable with the idea of day trading, the best thing you can do is get as much background knowledge and education as you can. A few good tips for beginners include:
- Make sure that you have a strategy before you get started: Some investors assume that they can jump into day trading and rely on their gut to tell them how they should be spending their money. Unfortunately, this is rarely the way to be successful. Instead, you’ll need to explore all of the different trading strategies out there and figure out which one works best for you.
- Be patient: Though it’s tempting to assume that you can simply quit your job and start trading stocks for a living, you might want to hold off before you jump into anything too serious. Take your time and get to know how stocks work.
- Watch the markets like a hawk: Remember that day trading is all about having the latest information about the current stocks. Constantly watch what’s happening in the market around you, and make sure that you’re the first to hear about important investor news.
Knowing When to Trade
Knowing how to day trade is just the first step in your new investment strategy. You also need to know when you should be trading to maximize your investment. Ultimately, in a volatile market, it’s usually a good idea for beginners to hold back and spend some time watching the space before they invest any serious money. You can always invest small amounts into stocks you feel confident about as you learn more about the space.
On a day-to-day basis, top day traders often find that the best time to trade is within the early hours of the morning, just after the stock market closes. In this short window of time, day traders can make hundreds of dollars just by jumping into action as quickly as possible. However, be careful not to rush into a decision because you think your time is running out. Day trading needs more patience than you might think.