In words of Warren Buffet “The stock market is a device for transferring money from the impatient to the patient”. Let’s read between lines. The investor or trader who is impatient (frequent buy/sell strategy) transfers money to the patient (holding strategy).
Find below herewith five tips which should be followed by a day trader:
- Take advice of professional trader
Before one starts day trading it is better to take advice from experienced and expert day trader trainer. Every trainer will have different teaching method and style. See for one who has good teaching method. He should also suit your trading style. They may be ready to teach in their free time. He may charge the fee. As he is spending his free time with you. But it is worth. You can assume that paid fee as an investment, which you need to get knowledge. They are the best share tip providers when you trade.
In future when you grow big, many newbies’s will come to get knowledge from you. At that time you can charge them likewise.
- Gather information from financial news
One has to gather news from across the globe. Segregate relevant news, which affects your business. Analyze and set priority which news will most affect your business. Stay updated on news like meetings, change in government policies and rules. Local, national and international news should be followed.
M&A, financial results, entry/exit of members of BOD, etc. These types of related news of the company one have shares in, make sense.
Though the news does not impact a common man but may have an impact on your investment in the concerned company. This news helps to take a smarter decision, especially while trading shares. Through nifty future tips also one can gather information.
- Treat trading as any other business
Take day-trading as any other business. It is not a hobby, but a serious business. It is not for fun that one is in day trading. Like any business, it needs devotion and dedication. Trading is a part. One has to devote a lot of time preparing a plan. Study different charts before coming to any conclusion. Follow news on TV, read business magazines, study reports etc. It is a full day activity.
- Keep eye on professionals
One should study professionals. What they are buying, when they are selling. For how much time do they hold the script? Since they have experienced one can learn a lot by keeping eyes and ears open and mouth shut. If one makes mistakes, then analysis the mistake. What went wrong and where? You can find them in many share market advisory companies.
It needs time, energy and devotion to master the skills. As the old saying goes “Rome was not built in a day” It was destroyed and then rebuild. This process was repeated many times over. Even if one makes loss he has to get up again for a fight.
Traders do not profit all the time. Many a time they incur losses. So one has to be prepared for losses and have patience during the time of loss. Commodity tips are also helpful to know the market trends.
Today’s successful traders were also novice once in a while. They got success by their hard and smart work. They had put in their efforts, made mistakes, but kept up their learning process.