Looking for some day trading strategies for beginners? Then this article is an attempt to elaborate on some easy day trading strategies which you can follow and earn some profits. Read on.

In the world of finance, there are several financial instruments like currencies, stock securities and commodity futures, which you can opt to invest in, and earn substantial profits. No doubt, there are risks involved, but you can earn a handsome profit, if you follow the simple day trading strategies for beginners. Day trading or intraday trading means buying and selling financial options like stocks and currencies within a trading day. In the past it was only professionals who dealt with day trading, but today several people take up day trading as a profit making venture. If you are thinking of taking a plunge into day trading, then you need to plan and strategies, so that profits can be earned, and the following paragraphs will give you some of them.

Beginner Guide to Day Trading Online

If you are a ‘kid’ in day trading, I mean a novice in this field, you need to ensure that the initial amount of investment is small as this would minimize the risk factor. Once you have enough experience of how the market works, you can go for day trading for a living, instead of doing a job (if you want).

As a ‘kid’ in day trading, one of the most important day trading strategies for kids is that you should not follow one or two financial instruments (say stocks) at a time. You need to learn how to analyze the fluctuations in market trends, so if you follow a number of instruments, it may be difficult for you. Another important day trading tip is that if you see that the price falls below 1% of the amount you have invested, then sell them immediately, as there are chances that the prices may go down further, so selling will minimize your losses. On the other hand, if the price rises handsomely, make sure you sell it. Many a time it has been found that, if the prices rise too high, they tend to fall thereafter, so if that’s the case, you will not make much profits. This is one of the most important day trading strategies for dummies, which most people ignore at their own peril. There are other day trading strategies that work, which you can go through as well.

Stock Trading for Beginners

Stocks is one of the most common financial instruments which are traded within the same day. There are several companies as well as government institutions which issue stocks, so you have a wide choice to choose from. As a beginner, you need to remember not to take big risks at the very start. You may invest in a couple of stocks to start with, and then go on to handle multiple stocks at the same time. Penny stocks, those which cost less than a dollar, is one of the best day trading strategies for beginners, to start with. The amount of profits may not be that high, but the amount of losses (if any) would be lower. The best way to deal with penny stocks is, whenever the price of stock rises (even by a few pennies), sell them and take your profits, as the prices may start falling later.

Currency Trading for Beginners

Currency trade also called forex day trading, involves buying and selling foreign currencies. Currency rates tend to fluctuate a lot and hence can give you a lot of profits. One of the most important strategies of forex trading for beginners is to trade in those currencies which show a track record of giving consistent profits. For that, you need to extensively research on that particular currency and see how it has performed compared to other currencies. Go through the trends and prepare a detailed report before taking the plunge. Intraday trading strategies, is another option which you can look at, to invest and earn profits.

So these were some of the day trading strategies for beginners, but the basic point is continuously analyzing the trends of the market. If you can do that successfully, you can succeed in day trading. Taking the help of a financial planner initially is after all not at all a bad idea.

By Madhurjya Bhattacharyya