If You Are an Intraday Trader Then You Get To Read This
Here are some rules about day trading that all serious traders should know. Here is the reason why some traders lose money with stocks, currencies, futures, or anything else, and it is because they do not have a basic understanding of important concepts like these. You must never let this happen to you. If you find these rules simple yet you must essentially implement them.
What Is Day Trading?
It is found that the term "day trading" is a widely misused and misunderstood the term. In actual, day trading means not holding on to your positions beyond the current trading day. Or in other words, you cannot leave any position open into the market close. Day trading is really the safest way to trade as you are not exposed to the potential losses that can occur when the stock market is closed due to the news that can affect the prices of your stocks. Regrettably, many self-proclaimed stock "day traders," hold stocks overnight due to fear or greed, thus setting themselves up for the catastrophic elimination of their capital in an unforeseen event. You must essentially follow following rules;
Rule#1 Never Forget to Limit your loss.
Limiting your loss is one of the most important rules that a day trader should learn. However, there is no thumb rule to be a successful active trader or to limit your losses. But some basic steps can be followed. A large number of people lose money in day trading is due to not limiting their losses.
Rule#2 Invest Small Part Of Money Rather Than Investing All Your Money.
Another basic thing to remember is that you must not day trade with all your money. This implies that you will only use part of your money for day trading. You must ensure that a bulk of your capital should be in very solid, fundamentally sound investments. Therefore, it was chosen for fundamentally correct reasons unless you become an extremely successful and reliable day trader.
Rule#3 Without Being Capable Of Doing Research You Will Stand Nowhere
You can assume day trading like any other business that you run since it needs a lot of hard work and dedication on your part. A large number of people makes the mistake of "sending" an order to buy or sell a stock or currency to the market with "trading." It is very easy to send an order to the market. Day trading certainly takes time to master. You must dedicate at least a few hours a day to do become master of it. If you are not willing to dedicate the time required, then you must not expect rewards in return and do not waste your time cutting corners.
Apart from these rules, there are many other small things that need your attention. So in order to know about minute factors that may slip from your mind, you must get in touch with the experts, who know how to carry out technical analysis.