Day Trading For Beginners Learn The Best Strategies On How To Profit Using Trading Tactics, Tools, Psychology, Money Management And Generate Passive Income

By Michael Branson

Understanding how financial markets work is crucial to making sure that global and economic markets are stable. Market participants (traders) vary due to their capital endowment, financial motivation and the type of trading activity. Each activity is also subject to different regulations depending on how sensitive it is and the country that it is based. 

One of the trading strategies that many traders have come to love is day trading. This is a process whereby you buy and sell stocks on the same trading day. This is different from other types because the trading activity continues even after the marketing hours have closed.  

Traders that buy and sell using this method of trading are called day traders. The time allows you to run dozens of trades in a single day or run a single trade. You might decide to buy a stock the first day and then sell it the next day, that is if you realize that selling the same day might not prove profitable. 

The standard practice is for traders to close trades at the end of the day. Trades usually last a few minutes or seconds. These traders do this because they want to avoid any risks that arise out of price gaps between the closing price on the day of buying the stock and the opening price of the next day.  

Just like any other day, these traders make quick profits and also quick losses in such a short period of time. The good thing is that day trading gives you a chance to make decisions based on analysis of patterns. 

Day traders study the general market and the price and volume movement of the stocks. They then use fundamental and technical analysis to keep themselves abreast with the latest news items in order to make the right decisions. 

With the right decisions come better profits and satisfaction from all you do on the market.

• Language: English
• Publisher: Michael Branson
• Release date: Aug 4, 2019
• ISBN: 9781393005896

Michael Branson

Many years ago I was listening to a teaching tape by Pastor Chuck Smith of Calvary Chapel in Costa Mesa, California. He was talking about Jesus's selection of the men who were to become His disciples. He said that Jesus did not choose perfect men for the job, but rather He used normal, everyday people, people with flaws and failings just like the rest of us. The phrase Chuck used was, "Jesus built with crooked sticks." That phrase made a huge impression on me. My thought was, "I want to be a crooked stick. I want to do something useful, something that would be pleasing to my Lord." After many years of thought and study, the result is this book. My hope is that this book can help resolve doubt or help restore faith or lead just one person to a path that will result in the acceptance of the truth of the Holy Scriptures. Along the way, an additional hope would be that someone out there would also become excited about being a "crooked stick."

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Table of Contents

Day Trading For Beginners .................................................................................................

Learn The Best Strategies On How To Profit Using Trading Tactics, Tools, Psychology, Money Management And Generate Passive Income ...............

Table of Contents...................................................................................................................

Introduction............................................................................................................................

Chapter 1: Understanding Day Trading ............................................................................

Chapter 2: Common Characteristics of a Day Trader .....................................................

Chapter 3: Day Trading Pros And Cons .............................................................................

Chapter 4: Types of Day Trading ........................................................................................

Chapter 5: Creating the Right Plan for You ......................................................................

Chapter 6: How To Manage Your Risks .............................................................................

Chapter 7: The Tools and Platforms You Need  ..............................................................

Chapter 8: Technical Analysis .............................................................................................

Chapter 9: Day Trading Techniques ...................................................................................

Chapter 10: Day Trading Strategies ..................................................................................

Chapter 11: Common Mistakes With Day Trading  ..........................................................

Chapter 12: Day Trading and Swing Trading....................................................................

Chapter 13: Day Trading Training.......................................................................................

Chapter 14: Common Day Trading Myths..........................................................................

Conclusion...............................................................................................................................

Introduction

Maybe you have thought that day trading is a financial activity that is only meant for the chosen few. Well, if this is what you have been thinking, you need to think twice. Day trading is not just meant for the chosen few. A while ago, people thought that the only people that were able to trade were those individuals working in big financial institutions, trading houses or brokerages. With the advent of the internet, trading has been opened up to all those that are interested in the activity. The exciting aspect of day trading is that it is a lucrative activity when one does it the right way. Regardless, we can’t overlook the fact that it is often challenging for new investors in the market. 

There is a huge misconception about day trading. Most people think that day trading is just like gambling. Due to this misconception, they end up giving up on their efforts to begin day trading. New investors in day trading business should understand that day trading is not similar to gambling in any way. So, the last thing you should be worried about is losing your money to unpredictable statistics. It is, however, understandable to get confused while engaging in day trading. There are endless swarms of financial transactions occurring within a day. This leaves men and women wondering how they can keep up. Day trading relies heavily on steady financial indicators which help in buying and selling of stocks, future contracts, currencies and stock options. The process is as simple as it sounds with some little technicalities you ought to comprehend. 

One of the main reasons why day trading is not gambling is that it depends on facts and figures. With gambling, players rely on available odds to place their bets. However, day traders depend on past facts and figures indicating the level of performance of targeted stocks before they can make a purchase. Consequently, as you can see day traders have a wealth of information that assists them in making sound decisions. 

You should also comprehend that day traders often apply logic and reason to their decision-making process. This is not the same thing with gamblers. True gamblers could be swayed by their emotions to bet on a particular outcome. Day traders refrain from this by all means possible. If traders realize the possibility of a particular stock performing badly in the coming few days, they simply ignore such stocks. Successful day traders in the market simply apply logic and reason to their decision-making process.

Day traders also have a unique winning mentality completely different from gamblers. Gamblers are always out looking for ways to make money overnight. As for day traders, they believe that getting rich is a slow and gradual process. Ideally, the slow process gives traders an opportunity to master the art of profiting from their daily investments. Certainly, patience pays.

The idea of day trading might appear as overwhelming for a novice trader like you. Nevertheless, when you break down the process, you will realize that it is based on simple rules that are easy to comprehend. This day trading eBook will take you through the basic attributes of the subject. It will explain to you what you need to know to become a successful day trader. Besides this, the book will point out possible hazards associated with day trading. To ensure that you enjoy the cruise, we will first begin with day trading fundamentals as we move to more advanced topics. By the end of the book, you will be fully equipped to invest in day trading without fear of losing your money. This manual also aims to adopt a unique perspective into the subject by refraining from the complicated jargon and out of the blues theories of day trading. Some interesting topics to anticipate in the material include recommended tips to avoid psychological challenges of day trading, developing your personalized, powerful day trading system, tracking news to enhance your day to day profit potential among others.

Chapter 1: Understanding Day Trading

What is Day Trading?

As the name suggests, this is the act of trading in financial instruments all through the day. You have to contend with the changes in prices during the whole day, meaning you have to be ready for both gains and losses.

Example

At 9.00 am, you might buy 2,000 shares of eBay stock and when the price starts to rise due to certain news, you can trade the shares at 10 am when the shares have gone up by $1.

This means that you make roughly $2,000 minus commission. When you deduct a commission, say $20, you make a cool $1980 in just 1 hour.

You need to note that day trading is aimed to give you small returns on each trade rather than a huge fortune via a single trade.

Why is Day Trading the Ideal Way to Make Money?

There are various ways to make money, but one of the best ones so far is day trading. Here are a few reasons to support this concept:

1. Ideal for Everyone

Day trading doesn’t require you to be of a certain race, education level or gender – as long as you have the motivation and some money to spare, you are ready to go. So, whether you have a Ph.D. or you dropped out of school, you can still make money out of it.

2. No Office Space, Inventory or Equipment

In addition to your smartphone