Stocks

A stock trader is someone who buys and sells stocks to create profits out of the price movements of the stocks. These traders are trying mostly to open positions and keep them for the next minutes, hours, days or months. But they are not keeping stocks for a long period of time.

Lets refine stock trading

Active trading is what a trader does while opening 10 or more trades per month. They try to make the most out of short-term events, so they can turn their investment into profits. Day Trading is the process of buying, selling and closing their positions of the same day. They usually do not care about what is happening inside the company, their trades will be open and close within a day. Their purpose is to open and close the trades in one day and make profits.

How to do day trading?

Never stop learning

When it comes to learning, it doesn’t mean learning technical stuff. It means being informed and updated with the latest events on the market. You should be aware of everything which influences stock market prices.

Never use all your capital

Decide on how much you are willing to lose. Decide what portion of your investment you can afford to lose. Set aside a surplus amount of funds you can trade with and you're prepared to lose. Remember, it may or may not happen.

Wait, do not hurry

Well, if you decide to trade, you need to be aware that you need time. Time to trade. If you are too busy with different activities in your life, maybe trading is not for you. You need a plan, goals and stick yourself after them.

Make small steps

If you are a beginner focus on one or two stocks during a session. You can find tremendous opportunities with just a few stocks. Nowadays, traders trade on the fraction of the shares. If Apple shares are trading at $250, you can trade $50 worth.