Why would you want to take up day trading? Maybe youre fed up with your boss, an intimidating character who cares little about anyone but her or himself? Or maybe you would just like to free up more time to spend with your Family and leisure activities and holidays.
I guess you wouldnt miss that trip to work either, getting stuck in traffic queues, paying more by the week, even the day, for fuel and car servicing costs. Your schedule is you own and you answer to no one.
When day trading, it is absolutely imperative to have a sound management strategy in place. Adopting a system that allows you to place a stop into your trading positions is vital. A stop is simply a method by which you can integrate a fail safe into your trading position so that if and when the trade goes against you, and sometimes it will, you will not lose all your money.
Note, I say not ALL of your money. It is inevitable you will lose some money when accounting for your day trading costs, it is part of the business as every professional trader knows. The idea is that your gains will far outweigh you losses.
Day trading requires good discipline. The two emotions that need to be addressed here are greed and fear. These two emotions, if allowed to control the mind of a trader will be a sure route to failure.
How do we quantify each, in terms of online day trading? Should you not have a proper management strategy in place, you will likely not have stop loss protection. Just suppose you see your trade doing well, you become greedy and keep with it. This is in the likelihood you are even watching it happen.
Then the trade starts to go in the opposite direction. Hopefully it is only temporary, hopefully it will happen slowly enough for you to cope with and to activate a stop loss manually. Unfortunately the markets are not like this and can rear their savage heads. So the reversal holds, you panic, but before you can activate a stop loss, the trade has beaten you moved faster than you can operate. You are gripped by fear, you panic. Need I say more.
For the day traders, both beginner and experienced, the easiest way to trade these days is, I believe, with ones computer. There is a vast array of trading platforms enabling you to be up and running with an online account usually within minutes and similarly with data feed, for day trading prices, for which you can either trade technically with charts, or by following fundamentals i.e. analysis of company and sector performance, such as on the Bloomberg TV channel for instance.
I find it easier to focus on charting software and first learn, then adhere to a few simple indicators. There is plenty of choice and you will be able to find something that can cater for you specific day trading requirements.
As you can see, day trading is no longer the restricted domain of the professional floor trader. With consistent application, it is available for you and I to grasp. Take things gradually, steadily and methodically because correctly applied, there is a solid part or full time occupation ready for our taking, often so much more reward for so much less time spent in the average working week.