What You Need to Know Before Day Trading?

Day trading basics

What you need to know before day trading?

You will most likely lose money when you start out, due to excitement, but this is how we learn, the goal is to make more profitable trades than losses.

It’s advised to start with swing trading, it's easier, and time is in your favor, unlike day trading which is buying and selling the stock in one day, and can become a full-time career, swing trading allows you to hold a stock for up to 5 weeks and earn a part-time income.

Finding a platform that offers low commission fees is important, as this can take from your profits. Some platforms allow premarket trading before normal day trading hours, which vary, the Nasdaq opens Monday to Friday from 9:30 a.m. to 4:00 p.m. local time. It's very important to learn how to use the platform on a demo account first, their fees and policies

Only day trade with money you can afford to lose, also, it's easier as you will not have emotional attachment to your trades. If you can’t learn to control emotions, Day trading may not be for you.

Understanding the difference between a short position and a long position. A buy or long position is a term that describes when a trader buys a stock expecting that it will rise in price and then sell and take the profit. A sell or short position is a term that describes when a trader sells (shorts) a stock expecting that it will drop in price and then buy back at a lower price and take the profit.

Know your Catalysts. A positive catalyst will move a stock price higher and could be an announcement of a new product release or a good earnings report that beats analysts’ expectations. A negative catalyst moves the stock price lower and could be a poor earnings report that missed analysts expeditions or a lawsuit against a company

Thanks for viewing and remember to make sure to learn from poor trades. As James Joyce said, mistakes are the portals of discovery.