Day Trading strategies for investors

Day trading is purchasing and selling a financial instrument over a day on the same day or sometimes several times in a day. It can be a dangerous game for newbies or someone who does not stick to a well-thought-out plan. Let us check out a few strategies that will help you as a day trader.

  1. Penny Stocks should be avoided

You’re probably looking for low prices and deals for your equity investment but stay out of penny stocks. Such inventories are often illiquid, and there are often bleak chances of hitting the jackpot.

  1. Set funds aside

Evaluate how much capital you’re prepared to risk for each trade. Many successful day traders, per transaction, risk less than 1% to 2% of their account. Set aside a surplus amount of funds you can trade with, and you are willing to lose.

  1. Set time aside, Too

Equity trading for the day requires your time. That’s why day trading is called that. In reality, you’ll need to give up most of your day. When you have limited time to spare, please don’t consider it.

  1. Expertise Is Power

In addition to understanding necessary trading procedures, day traders need to keep up with the latest stock market news and events affecting stocks, the government’s interest rate plans, the economic outlook, etc. So get your homework done.

  1. Small Start

As a beginner, during a session, focus on a maximum of one to two stocks. With just a few stocks, tracking and finding opportunities is more comfortable. Recently, being able to trade fractional shares has become increasingly common so that you can specify distinct, smaller amounts that you wish to invest.

  1. Limit Orders Cut Losses

Decide what sort of orders to enter and exit trades you will use. You will have to decide if you are going to opt for market orders or limit orders. It is executed at the best price available when you place a market order, but no price assurance. A limit order, on the other hand, assures a guaranteed price but not the execution.

  1. Stay Cool Stay Cool

There are times when the stock market is in a wild frenzy mode testing your nerves. It would be best if you learned to keep greed, hope, and fear at bay as a day trader.


  1. On profits, be realistic

To be profitable, a strategy doesn’t need to win all the time. Many traders win only 50% to 60% of their trades. They are doing more on their winners, however, than they are losing on their losers.

  1. Stick with the Plan

Successful traders must move quickly, but they don’t have to think quickly. They develop a trading strategy in advance along with the discipline to stick to that strategy. Rather than trying to chase profits, it is essential to follow your formula closely.

  1. Time of Such Trades

As soon as markets open in the morning, many orders placed by investors and traders begin to be executed, contributing to price volatility. A seasoned player may be able to acknowledge trends and choose correctly to make profits. But for newbies, for the first 15 to 20 minutes, it may be better just to read the market without making any moves.

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