Day Trading For Newbies

What/who is a Day Trader? Day trading is simply a style of trading in securities where a trader buys and trades particular financial security over the same trading day so that all outstanding positions are closed before the opening of the market. A Day Trader is a short term trader. They are not long term traders. The reason for this is that a day trader only trades one or two securities on a particular day. This means they have very limited flexibility with their trades.

Day Traders can be short term or long term traders. There is no definite definition for a Day Trader because there are no set rules or guidelines for how to define a Day Trader. Some Day Traders may define a Day Trader by the rules of the game (i.e. an equity requirement). However, other day traders may not follow this particular equity requirement because it is usually only used for a short time frame.

Many things define a Day Trader. The most important factor is obviously the time frame that they are trading. Some days traders will only trade the markets close to their daily location; other days traders will move their trades to the markets closest to them (i.e. trading platforms). Once a trader has chosen their trading platforms, they will then need to learn how to interpret the charts on their trading platforms.

When beginning to become a day trader, there are many options available to the individual who wishes to start their career by becoming a day trade broker. These include trading platforms such as stocks, ASX, TradeStation, OptionsHouse, etc. There are also investment types available to the day trader such as futures, options, stocks, forex, etc. The brokerage a day trader chooses will depend on what they feel will be the best option for them. This is because there are hundreds of different brokerage firms out there with different styles, policies, charges, and services available.

For day traders to maximize their profits and minimize their losses, they must learn how to read the charts. One of the first things they should learn is how to read the candlestick charts. Candlesticks consist of small ticks that show the direction of price movement. Learning to recognize these small red ticks can give the day trader an advantage over other traders because it will show them where a breakout may be or signal a reversal in price. If the broker allows you to open a brokerage account, you must learn as much about the brokerage firm as possible before signing up for their service.

Day traders must be careful to not let their emotions affect their trades. They must keep their trading in a controlled environment because the volatility of the markets can easily get out of control. When starting as a day trader, you must keep this in mind and remember that trading does not make you a millionaire, but it can make you a very wealthy trader!