Day trading is hard and intimidating but with these quick tips you can make money day trading and have successful side income that makes you money. In day trading you need to constantly be watching the markets picking stocks and following market trends. Here are a few tips to help you.
1. Do your homework
Part of trading is getting in tips and information and keeping up on the markets. Yahoo Financial, The Journal, and other places to find your information and then begin to see the trends and follow them to help you make money.
Day trading prides itself on looking at trends and take advantage of them. The whole appeal of day trading is to quickly find a trend that makes you money, and by taking advantage of it quickly making the most money you can.
The biggest thing you have to do in stock trading is to dabble in several stocks in several industries and in several economic sectors. Also in this day and age you can dabble in several countries as well. The farther spread out you are the more you can take risks and not be affected by on industry, market or country going down. There are few ways to do this. ETF’s (exchange traded funds) are a great way to do this because they are bought and sold on the market like individual stocks. You can also do high-yield mutual funds but that can get expensive. You can also select and form the portfolio yourself which is a favorite of day traders. All three make you money and all three are staples of day trading.
4. Risk, take them
Another part of stock trading is managing your risk. There are several ways to do this. A few we have already mentioned. But another way is to keep investment amounts low and using stop-sale orders you can minimize your loss and spread your risk across several different prices and minimizing your risk.
5. Brokerage Houses
Find one you love and never leave them. If it’s an online place like Scottrade or a traditional brokerage house, it should have low fees (because you do so many trades) or at least a discount for high-volume trades. The point is low-fees; good services, good information and good advice are all things to look for in a brokerage house.
6. Use Day Trading Software
Successful day trading can often depend on the trading platforms and stock analysis software you’re using. While it’s still possible to make good profits using only your stock broker’s trading platform, as your trading business profits grow you should consider using automated software that can help you track and monitor the movements of many stocks at once. Some software can offer the ability to create pricing signals using charts of pricing movements, which are able to send you a buy signal and a sell signal based on trends for each individual stock you’re trading.
In conclusion, day trading can be hard to first pick the stocks, find the trends, ride them and get out when you should. But with these tips you can minimize risk and maximum returns which means with day trading you make money!