Day Trading Tips – Why This Investor Thinks It’s A Bad Idea For Most People

If you want the best day trading tips, my advice is not to do it at all. If you have plenty of money, then you are sufficiently stable and can make your own choices. But day trading in this day and age is a lot more difficult. You need the best software, and to be truthful, the best traders are likely out there using bots running on algorithms. If you think you can keep up with a bot, go for it.

Stocks move quickly these days, and that appears to show opportunity. However, it’s not easy day trading for a profit. Unless you’re in the top 1 percent, you get milked for your money trying to trade quickly. I’ll give you a scenario. You buy into this one stock thinking you’re going to make a profit. You’re fine holding onto it when it doesn’t rise immediately.

All of the sudden, you’re not day trading the stock, and you’re focused on swing trading. Then you realize that you can tell in your gut that the stock is being manipulated downward. It will eventually rise if that manipulation holds true, but you are being milked for your money. Someone out there has more time and more money on their hands.

Listen, day trading is just not easy. It’s fun, and it can be profitable. While my advice is not to do it, your choice is yours. Just don’t get a big head thinking that you’re going to run the market. Even with great software and even with a lot of money, you have to remember that there are big traders at play out there. They are the ones that really control the market environment.

Even as a day trader, you’re really going along for the ride. Therefore, what I recommend is working your way up the ladder with investing. You have a lot of things to focus on in this life first, ahead of how well you build up your finances. If you are to that point, then congratulations.

But I can say with near certainty that the majority of people who actively seek out day trading opportunities are nowhere near that point in their lives. In fact, by the time they get there, they might just realize that day trading is for the birds. Why gamble when you can invest? That’s just my two cents, but if you’re going to day trade, do it carefully.

Top Day Trading Tips

Technology has made day trading possible for anybody out there. However, day trading requires realistic expectations and a disciplined approach. Would you like to be successful in day trading? If so, here are day trading tips to help you out:

Avoid Focusing Too Much On the Money

This is because of the fact that focusing too much on the money can make you do some silly things. Only focus on the money when setting your risk. If you focus on the money you could end up moving your stops far from price and taking small profits to avoid losing what you have. These things may not be good for your longevity in day trading.

Keep in mind that price will do whatever it wants to do regardless of what you do. So, just focus on executing the trading rules you have tested instead of focusing too much on the money. To be successful in your day trading, avoid focusing on the profit/loss column while trading.

Accept the fact that risk control is very important

It is good to be a good risk manager when it comes to day trading. Make sure that what you put up per trade can handle many losses in a row. Accept losses and move on. Otherwise, you could end up making silly mistakes that could make you fail to recover your capital.

Limit Your Costs

Remember that broker fees could end up eating into your profits. Therefore, it is good to be stingy with these fees without sacrificing the quality of services you receive. In addition, other costs related to day trading could also end up eating into your profits and it is good to identify these costs and be stingy with them.

Set Your Trading Business Hours

Trading around the clock can be easy but doing so may not be a good idea. Remember that we trade to live and not live to trade. So, it is good to look for a structure when it comes to your trading hours. To enjoy the freedom that day trading offers, set times you trade and times not to.

Trade from a Balanced Frame of Mind

Trading from an unbalanced frame of mind can hinder your ability to trade according to your plan. Remember that your psychology can have a huge impact on your success in day trading and it is good to have a balanced frame of mind when it comes to day trading. Ensure that you are calm when trading to succeed. You can achieve this through meditation, affirmations or music and so on.

Come up with rules for entry and exit

Keep in mind that there is no perfect entry or exit. It is up to you to come up with a trading plan that will suit your needs.