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How to Start Day Trading
For a beginner, every new trade has its own learning phase. If you are a newbie, here is something to guide you. Few ideas shared here will help you start your career as a day trader.
Day trading involves a decision making that determines your success. Hence, you need to know when you should trade. And how much you should trade.
Beginner’s Day Trading Guide
Markets are often compared with a gambling game. However, it is not absolutely true. You cannot trade just following your whims. A strong research and judgment skill is vital for day trading. These tips will self-explain it.
Go on Practicing
As an old adage says, practice makes man perfect. Don’t be too calculative in the beginning. Give yourself a good time to practice. Learn to use and implement technical analysis. Tools like trading simulators will help you to practice and form day trading strategies.
Save a Certain Amount as Buffer
Never make a mistake of risking everything in trading. You should buffer up acertain amount to safeguard your trade. Even if you lose, you will not be in a disastrous situation.
Learn Risk Management
Learn to manage day trading risk. See that you do not risk more than 1% of your capital on any single trade. Also, set your limit for daily risk. Daily risk will protect you against loss by a single trade. Set your daily risk limit from 2 to 3%. Follow the limit while trading.
Time to Trade
Trading during certain hours every day will give your trading a level of consistency. Some traders trade during full hours. While some trade during certain hours of a trading day. You should make moves during initial hours or last two hours. These hours offer tremendous price moves. You have good opportunities to make aprofit if you trade during these hours.
Day trading is a tricky part of thestock market. Spend good time to learn and master the things and you will be a good trader in a due course of time.
By - Nifty Trading Academy Research Team