Easy Day Trading Strategies for Beginners

Day trading is when a person buys and sells a financial instrument in one day. They can even go as far as to do it multiple times a day so that they can take advantage of small price movements. Playing it smart can make this method lucrative. However, newcomers should not be too quick to jump on this because it will still take some time and an excellent strategy to gain income from this.

Not all brokers use day trading, but for those who know how to play it and see its potential, it is one of the go-to methods in gaining profits. In fact, through day trading, you could make a lot of money much faster than if you pursue a long-term investment. All you need is a clear plan and the right tools and resources for success.

Good strategies are the foundation of a good plan. See how you can utilise the following so that you can make your day trading efforts profitable.

When day trading, you have to keep up with the latest news and information about the stock market. Doing your research and homework will give you a better perspective and insight on which stocks are doing well and which ones you should avoid.

Make a list of stocks you are interested in and keep yourself abreast with the latest news from them. Check their business often and subscribe to relevant and reliable websites to get the latest.

Using the best trading platform in the UK in 2022 will also help you in keeping up with the stocks you are interested in. That’s because the best trading platform will offer you tools that both provide you with valuable insight and information and help you to monitor the path of your investments in real-time. Additionally, good online trading platforms enable you to see what changes you need to make to improve your outcomes.

You also have to set aside day trading funds. See how much you are willing to risk for each trade. Successful day traders risk less than 2% of their accounts per trade. You can also use the surplus amount so that you can be more confident in what you purchase. Whether you're investing in stocks or crypto, you should only ever invest what you can afford to lose. Because outcomes are never certain, you should never trade more than that amount or risk your mortgage or rent money, for instance.

Set aside time as well, as day trading will require time. You may end up allotting your whole day, so make sure you have enough time in the day to trade or set aside a specific date so you can focus on the task at hand.

Beginners should also start small. Focus on one or two stocks at first and then track the growth and find new opportunities, but don’t go too small and purchase penny stocks. Penny stocks are often hard to gain a profit from. Unless you have thorough research on these, it is best to stay away from them in the meantime.

Before putting down money for stocks, time it properly. Patterns can be learned, but for newbies, keeping still and waiting for movements in the stock market for about 15 to 20 minutes can be beneficial.

Have a limit order. This is a guarantee that you will not exceed the price you set so that you can trade with more precision. You are not just buying at a set price, but you can also sell at the ideal rate possible.

When thinking about your profit, you have to be realistic. Traders know that there are days that you can gain something and some days when you just have to face a loss. Most traders only recover 50% of what they trade, but the good thing is that they usually earn more than they lose.

To ensure proper gain, you have to assess the risks involved in your moves so you know when to pull out or go all in. Make use of all the information and the tools available to you so you can decide on the given time frame.

Experienced day traders will always tell newbies to keep calm. It is natural for the stock market to get on your nerves. As a day trader, you should learn to keep emotions in control. Your decisions should be guided by logic and sound judgement.

Finally, if you did your homework and created a plan that you believe would earn you profit, stick to it even if there are things that make you want to change it on the fly. You can move fast, but you don’t have to think fast. Strategies and plans are made from using data and calculations that are as close to reality as possible.

Don’t let your emotions get the best of you, and follow your formula as closely as possible.

Investing in Crypto

Newbies may have found cryptocurrency as their gateway to stocks. However, the UK Financial Conduct Authority reminds investors that crypto is yet to be regulated after finding that 69% of traders under 40 years old had the misconception that it is regulated.

Cryptocurrencies are yet to be regulated in the UK. Therefore, people are not protected by consumer protection laws if their funds are lost due to some unforeseen circumstances.

Young investors are driven by competition with family and friends when it comes to investing in cryptocurrency and other high-risk products like crowdfunding or foreign exchange.

68% of the respondents from their survey said that they could compare investment to gambling. 58% of the 1,000 respondents aged 18-40 years old said that they were incentivised to make a high-risk investment after learning about the investment on social media.

Bitcoin is now considered the world’s biggest digital currency. However, it is also known to be volatile and seemingly unstable.

Find the Best Trading Platform in the UK

Trading is a challenging yet rewarding way to earn profits over a period of time. Anyone looking to get started with it may face many challenges in terms of learning theories and their practical applications.

If you want to get started, use Best Trading Platform UK now. If you’ve been wondering “what is the best trading platform in the UK”, we can help! Our experts offer various services and features that will help you make the right choices and find the best brokers.

Get the latest updates and data so that you can find the best UK trading platform for stocks, as well as opportunities and ways to increase your assets. For your enquiries, don’t hesitate to reach out to us today! You can also visit our homepage at besttradingplatformuk.com for more information.