Before we start giving you some tips about day trading, let us first explain to you what day trading is. In fact, day trading is when market positions are held only for a short time. Moreover, what happens is, the trader opens as well as closes the same position on the same day. However, back in the 90s, day trading concept got a bad reputation because some beginners started applying it, without even applying tested stock trading strategies. If you are a beginner, and you do not want to make the same mistake, keep on reading this article about how to day trade.
For your entry points, look for scenarios where supply and demand are drastically imbalanced.
You have to keep in mind that, financial markets are just like anything else; if the supply is near exhaustion, and you can still find people willing to buy, the price is probably about to go higher. However, if there is too much supply and you can’t find any willing buyers, the price will eventually go down.
Always set price targets before you jump in.
Whenever you are thinking about buying anything, decide beforehand how much money you want to make. After that, stick by your decision on the price. In fact, this makes you prepared for the amount of money you will receive, and keeps you from becoming greedy.
As strange as it may seem, the most successful day traders, do not trade on a daily basis. However, they may be on their computer, watching what is happening in the market, but if they don’t see any beneficial opportunity, they will not start a trade on that day, and that seems logical. In fact, most people go against that tip, and trade on something out of an impatient desire to just do something! Try your best to not be like them, and wait for the perfect moment, then trade your plan.