Beginning Day Trading - Tips For Beginner Day Traders
Only Buy a 100 shares at a time for the first month of trading!
As you learn about day trading you will make lot's of mistakes. To prevent this enter with the minimum amount of shares and play stocks that are under $100.
To begin we must begin to analize a stock. Technical Analysis. Maybe you already like a stock if so then begin there otherwise look for common stocks that are under $100 and have plenty of Volume.
Text Book Trade For Beginners
The second black line is a resistance line and the stock has just broken though it. Any of the entry points marked in gray are good.
The earlier ones being more risky but more rewarding too.
When the market is up and the stock is up on the day look for this pattern.
If the Day is negative look for the opposite pattern.
Day Trading Wisdom For Beginner Day Traders
1. The Beginner Day Trader does not know what will happen when they enter a position and often get's stuck in the mud as a position moves against them sinking deeper and deeper.
The experienced day trader always knows almost every possible outcome of a stock price and has a plan for something moving against them and for them.
2. The Beginner Day Trader often exits a position to early and doesn't let their winners ride reducing ability to make good profit from moves.
The experienced day trader waits for specific points to be reached and observes slowly reeling profit in as the stock moves in their favor towards tose realistic target points and seeing if it wants to move beyond them.
3. The beginner day trader often holds their stock too long and doesn't see the signs of the stock reaching its peak price for the time frame being observed. A winning stock becomes a loosing stock.
The experienced day trader has good timing and recognizes sign that a stock has reached it's peak price. They act swiftly taking profit at the highest point.
4. The beginner day trader should enter stocks with just a 100 shares at a time. This way they can limit losses as a result of poor timing, judgment and stop losses.
The experienced day trader enters the market with larger amounts and loads up as the stock moves in their favor. They make large amounts and are right 7 out of 10 times.
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