Day trading strategies are those which suit the opening and closing of trade markets within a short period of time, usually a day. Bearing in mind that the market can change many times within a day, day traders apply riskier strategy to get profit. It’s believed that the shorter the time frame of trading, the more dangerous it is to trade. Here, a mistake is more costly and is likely to happen frequently. This calls for a strategy that is both efficient, and useful, for one to make any profit out of trading.
Here is some useful advice that may help:
- Choose a strategy and stick to it consistently
Before making a move into trading, you need to formulate ideas on how you will execute your decisions while trading. You should be aware of what factors you will be considering while entering or exiting a trade. Some will look at a chart of analysis, while other will check the economic indicators to make decisions. Regardless of your method, ensure that you are consistent, to learn the trend through trading experience.
- Pick a broker who has a suitable platform
Choosing a suitable broker is as important as selecting an efficient strategy. Take your time, and research the pros and cons of the various reputable Trading Platform, Social Trading Platform or brokers platform, and then make an informed decision. Ensure to check on the policies of each broker, and compare them, to select one that has the most favourable policy. Remember, a decent broker with a bad platform is challenging to work with; vice versa is also true.
- Always check your expectancy
The best way to find out whether your strategy is working or not is through expectancy. This involves checking your trade history and comparing your trades that won, to those that lost. This will help you know if you are making a loss or profit.