April 2019 | DayTradeFEED.com

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10 Tips for Day Trading Success: Part 1

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10 Tips for Day Trading Success: Part 1

When Day trading, you are buying and selling stocks very quickly. Most stocks will be traded one or more times during a single day. Looking for small changes and taking advantage of these changes can be a very rewarding, but it must be done correctly. Stick with these 10 tips and you’ll be on your way to Day Trading success.

However while there is good opportunity to make money Day Trading, it can also be vey challenging and end in a loss for those who are un educated in the strategies involved. It takes a certain skill set that not everyone is cut out for.

Day Trading Tip #1 Know Your Stuff

As a day trader it is not enough to simply have a general knowledge of trading. To be successful day trading you need to be up to date on stock market news and current events that will cause changes in the stock market. It will be very valuable to you You will be ahead of the game if you are well informed about any changes or foreseen changes in the US economy as well as foreign economies.
Pay attention and spend some time with research if you want to be successful. A good strategy would be to make a list of stocks you may want to trade so that you might be able to pay close attention to changes in these market. Read or Listen to the news. Maybe consider joining twitter.

Day Trading Tip #2: Give Yourself a Cushion

Having a cushion of funds will let you fill confident as you make trades. Knowing what you are willing to risk will help you be more successful. A good range of risk for Day trading is around 1%. Lets use a .5% risk in an example:
Let’s say the trading account has $40,000. If we decide to risk .5% on an individual trade with a $40,000 account, then our maximum loss for this trade would be $200 (0.005 x $40,000).
When trading you have to set aside money and be aware it is a risk. You don’t have to be happy losing money on a trade, but must know it is a possibility. Having money set aside to trade will help you be comfortable and successful.

Day Trading Tip #3: Give it the Time it Deserves

Don’t move forward with Day Trading unless you are willing to devote some serious time. Most of your day will be involved with watching the markets and making trades. It is not something to do during your lunch breaks. To be successful you need to move quickly on trades is a major strategy. Also, as we discussed earlier, market research is so important and can be time consuming in its own right.

Day Trading Tip #4: Baby Steps

If you are just getting started with Day Trading, it is wise to not spread yourself too thin. Try focusing on one or two stock per session until you get the hang of it. This will allow you to really learn and analyze what is going on.

5. Less isn’t Always More

It’s not a bad idea to look for low stock prices and deals, but we don’t suggest using penny stocks. The low risk does not outlay the low chance of making large profits. Penny stocks are often times illiquid as well which is not ideal when day trading.

Stay tuned! 10 Day Trading Tips: Part 2 will out next week. contact us at daytradefeed.com with any questions on tips 1-5.

How Much Money Can I Earn Day Trading?

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HOW CAN I MAKE MONEY DAY TRADING?

How much money can you make day trading? Great question.

Day traders are not required to disclose their trading results to anyone but the IRS and because of this it is tricky to come up with an average of how much you can make. There are many strategies in trading. This, along with how much capitol traders are working with, must be taken into account.

In their 2011 research paper “The Behavior of Individual Investors,” Professors Brad M. Barner and Terrance Odean at University of California, Berkeley discuss how those who traded without diversified portfolios usually saw an average loss of money. There are also fees with transactions, so it is really important to have that proper education before attempting to make money during day trading.

HOW CAN I MAKE MORE THAN I LOSE?

The best way to assure that you are making money day trading and not losing money is to set stop/loss points as well as profit taking points. It’s important to not make too much of a gamble for an individual trade. The goal is to never allow one bad trade to ruin out your account.

Many full time day traders suggest that to make money day trading you should not risk more that 1% per trade.

Therefore, if you are looking at an account with $30,000 in it, the most you should be risking on a single trade would be $300. Using this 1% strategy will lessen your losses. This takes practice and discipline and will help you to make more money day trading.

A QUICK EXAMPLE

Let’s expound on the above example to see what setting stop/loss points looks like.

If we stick with a $30,000 account,  We are able to risk a maximum of $300 for a single trade. Let’s say the stop/loss is $0.04 and if the share price below $16 ($120,000 buying power/7,500 shares).  With this, we can take 7,500 ($300/$0.04) shares per trade to and stay within our $300 allowed.

Keep in mind this does not include Broker commissions.

FINAL THOUGHTS ON MAKING MONEY DAY TRADING

It would be wise to first ask yourself what you want from Day Trading. What kind of time are you willing to put in?
Using a Broker is a wise route if you and unexperienced, but they do take a commission which will cut into your net profit.  They are a more secure route, but even with a broker we don’t suggest looking at day trading like a hobby.
Day trading takes some serious discipline and training. The strategies are not 100% and there is always a risk. There is no guarantee that you will make money day trading or be able to predict your average rate of return over any period of time.
There are, however, some solid strategies. Mastering these will help you make that extra money you’ve been dreaming of. Contact us at DayTradeFeed If you are ready to commit to learning the strategies that can lead to success in making money day trading. Our personal Coaches can answer whatever questions  you may have.