10 Day Trading Tips for Beginner Investors

Strategy

Explanation:#Binance

1- Knowledge is power

In addition to the importance of knowing basic day trading procedures, investors need to know the latest news that affects stock prices and economic forecasts.

It is important for the investor to prepare a list of the stocks he wants to trade, and to follow all the news related to the companies he has chosen, and the general markets, and to read this news from reliable financial websites.

2- Allocate a portion of

Savings for trading

- It is important for people to determine how much money they want to risk, and many successful day traders risk less than 1% or 2% of their savings per trade.

- If a trader has, for example, $40,000 in his account and is willing to risk 0.5% of his capital per trade, the maximum loss he may face is $200 per trade.

It is important for the investor to allocate a portion of the surplus funds for daily trading, and to be prepared to lose this money.

3- Allocate the necessary time

- Day trading requires a lot of time, so if the investor does not have enough time throughout the day to follow the markets and news, it is better not to take the step of day trading.

4- Start investing on

small scale

- It is better for beginner investors to focus on one or two stocks at most, as the fewer the number of stocks, the easier it is to follow.

- It has become common to trade fractional shares, which are parts of a whole share. For example, if Amazon shares are trading for $3.4 thousand, an investor can buy fractional shares of Amazon worth $25. Investors can then trade large-value stocks for small amounts.

5- Avoid stocks

Small

Investors usually look for low-priced stocks to buy, but most of these stocks do not provide opportunities for making profits. If the investor does the necessary research and does not find a real opportunity to make profits in such stocks, he should avoid them.

6- Choosing the time

Suitable for trading

- Many investors start trading as soon as the markets open, which leads to price volatility, so it is better for beginners to read the market without taking any action during the first 15 or 20 minutes of the markets opening.

7- Avoid losses

On specific requests

- The investor can rely on a brokerage company to carry out the trading process on his behalf. In this case, the investor must be specific regarding the buying and selling price, because if he is not specific, the company will buy or sell at the best price available at that time.

8- Be realistic about

Profits

- It is not necessary for the investor to make profits all the time by following the same strategy. Many traders only make between 50% and 60% of the trades they make. However, it is important for the investor to ensure that the risks involved in each trade are limited.

9- Keep calm

- A day trader needs to learn how to stay calm, and make decisions based on wisdom and not emotions, especially since it is easy for an investor to be influenced by the decisions of investors around him.

10- Commitment to the plan

The topic

  • - A day trader needs to take quick steps, but he does not need to think quickly, so it is important for the investor to develop a trading strategy, stick to it, and not let his emotions play on him.

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