Day Trading for Beginners

As a newbie, day trading can definitely be very intimidating. After all, you are risking your hard-earned money in the world of stocks, Forex, and more, all for the chance of making big profits. The fact of the matter is that when it comes to day trading for beginners, there is a lot of skill, knowledge, and preparation that has to go into it.

This is not something that you can just wake up one day and start doing on a whim. It’s just not that easy. However, with the right tips, tricks, strategies, and the proper setup, your life can be much easier. Today we are here to provide you with the biggest day trading for beginners tips to get you on the right path.

Day Trading for Beginners Tips

Folks, if you want to become successful in the world of trading, you absolutely want to pay attention to the tips which we are about to discuss. Keep in mind that these tips are not necessarily about how to trade only, but about everything that goes into trading too.

Pick Your Market

The first thing that you need to do for your day trading setup is to figure out which market you want to trade in. Sure, you might want to trade stocks, but the fact of the matter is that you need at least $25,000 to trade the stock market. This might be out of the question for you.

Yes, you may also be able to trade on certain futures markets, but even this requires at least $1,000 to start. If you are a beginner with limited funds, we would recommend sticking to the Forex market. You can trade currencies with as little as $50, making it perfect for newbies with very limited cash flow.

Pick Your Day Trading Setup

The next thing that you need to do here is to create a great setup, and by this, we mean your hardware. Ok, so while mobile trading is becoming more popular, that teeny screen on your phone is going to make charts and indicators hard to read, not to mention that mobile connections are not all that reliable.

Therefore, we strongly recommend that you use a good laptop or even a desktop computer for this. Moreover, always make sure that you have a very reliable internet connection. Day trading happens fast and things can change in the blink of an eye. A bad internet connection can spell doom for even the most experienced of traders.

Finally, you will need to find the right day trading platform to use. Sign up with a broker and try out the various platforms offered to find the one that you like the most.

Picking the Right Broker

When it comes to the right day trading setup, something else that you need to keep in mind is that you will need to have the right broker in your arsenal. When it comes to Forex specifically, seeing as you might be trading with just $50, it is important that you find a low fee broker, and the less money you have to trade with, the lower those broker fees and commissions should be.

With that being said, we do not recommend going with the very cheapest and lowest cost broker out there. In case you need technical support, you do want a broker that will provide you with instant and reliable support. Super low fee brokers often have lackluster support, and as a newbie, that is definitely not something you want to deal with.

Day Trading with a Demo Account

When it comes to day trading for beginners tips, one of the biggest ones that we can give you here is that you definitely want to start off with a demo account. Every trading platform or broker worth the money should always come with a demo account.

Demo accounts allow you to test the waters without having to risk real money. These allow you to trade with fake money, Monopoly money if you will. This way, you can practice your strategies and techniques without putting real money on the line. Only when you see some success with your demo account should you transition to trading with real money.

Your Day Trading Strategy

Ok, so you definitely need a couple of good day trading strategies in your arsenal. The fact of the matter is that you cannot start trading without a good strategy. Now, there are so many different strategies out there, literally dozens of them, that we cannot possibly begin to cover them today. We will be doing a more in depth look at day trading strategies later on.

However, for now, what we need to tell you is that trading with your heart or with your emotions is out of the question. Moreover, trading without any sort of ground base or basic knowledge is a bad idea too. You first need to learn the basics, the terminology, what charts and indicators are, and you need to develop a solid day trading strategy.

Nobody is saying that you need to be an inventor here. There are plenty of great trading strategies out there already. You just need to learn an easy one that works from you, and then you can always build it up from there.

Starting Small

The other trading tip for beginners that we want to relay to you is that there is no reason for you to start off big. Even if you saw lots of success in your demo account, you still want to test the waters and start small. Start by trading with just $50 and trade using only the minimal lot size.

Also, if you are trading for the first time, just open up a single trade or maybe two. Simply put, if you don’t have much experience, there is no point in trying to go big. The whole “go big or go home” mentality doesn’t really apply to trading, and certainly not to newbies.

Day Trading for Beginners – Final Thoughts

The bottom line is that if you start your journey in the world of day trading using the tips we have outlined here today, you will make things much easier on yourself. Stay tuned because there is a lot more useful trading info coming your way!