Day Trading for Beginners - Tips by Meir Barak

While stock day trading might be one of the most lucrative trading approaches, beginners shouldn’t trust their gut feelings when developing a strategy or building the portfolio. Position traders, i.e., those who trade in the long-term and operate with daily and weekly timeframes, have more chances to become winners in percentage terms, though it requires a generous initial deposit to begin with. When it comes to day trading, nine out of ten traders will see their deposit vanish sooner or later.

The statistics show no mercy, which is why traders, especially novice ones, have to rely on a day trading course and learn from experienced fellows.

Day trading for Beginners – How to Start?

Every successful journey has a beginning, and you should start off on the right foot. The first steps are tightly related to learning, particularly theoretic courses that touch upon the main principles behind the stock markets, technical and fundamental analysis, risk management techniques, and so on.

While fragments of such information are dispersed on the Internet, it requires a tremendous effort to compile a well-structured course on your own. Besides, there are many pretending gurus that might generate confusion and lead your notions in the wrong direction. A good start would be to attend an online day trading academy like Tradenet. It is a stock day trading school established in 2004 by Meir Barak, who has proven experience of generating profits for years.

During the online courses, you will be able to learn including by watching how others trade and implement strategies in a disciplined way. You should learn to make the right conclusions when analyzing the moves of advanced traders.

According to Mr. Barak, the pure theoretical learning might last about ten weeks, though it depends on your ability to assimilate the information. Then, you can start trading by yourself, but the main goal of your trading activity should be learning rather than generating profits, at least for the first months.

Day Trading for Beginners - Start Slow

As mentioned, it doesn’t make sense to dream about becoming rich in the first years of trading. The learning process continues as you develop your trading skills. This aspect is very important because there are many young traders who cannot adequately set the priorities, thus ignoring the discipline and learning in a rush for quick money. Your goal is to defy the statistics and be in the top 10%. For this, it is imperative to start slow and analyze each of your moves, including mistakes and risks.

You should treat stock day trading as a job that requires a professional approach rather than a gambling attitude. Thus, the main rule is to stick to the risk management principles no matter what. Even if you anticipate a bullish move that is driven by major news, don’t put too much money on stake. At one point, you can blow your account because of only a few wrong decisions. The key is to accurately assess your deposit size and adjust the trading strategy accordingly.

Day Trading for Beginners - Manage your Expectations

Implementing top-notch strategies is great, but besides managing your trading account, you should also manage your goals. Great expectations that involve high return on investment (ROI) figures might disappoint you in the end. You should learn to be realistic and analyze the circumstances from all perspectives.

Traders with high expectations tend to focus on the short-term gain and are often tempted to increase the stakes in order to accelerate the success. However, going for the big wins is wrong. Instead, you should choose a strategy that works and understand the risks against the potential return. Even though stock day trading is about short-term trading and hourly timeframes, your goals should relate to the achievements in the long-term.

Learning day trading might be challenging, but everything becomes easier when attending an online day trading academy. All you have to do is to implement the rules and stick to them. It’s about giving up your own convictions and temptations while adhering to the professional way.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.