8 Things You Need to Know Before You Begin Day Trading

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Day trading is something that a lot of people want to get into nowadays. It’s a great way to make some extra income and get into a new field that you might not have thought much about before. You can learn a lot about day trading by just going online and starting up with the trading process, which is one of the main reasons why a lot of people are getting into the field. The chances of getting great success in day trading might not be the best, but that’s enough to get a flood of people into the day trading platforms and getting them started trading.

However, day trading is not the easiest field to get into, you need an expert to guide you into it. It’s pretty tough to learn the advanced skills that you need to find real success in day trading. That’s why we’ve made this article for you. We want to help give you the most important information that you need regarding how you can get into the day trading field and find that extra income you’re looking for.

1. Enter, Exit, And Escape

You should always have three different prices for going through day trading. There should be enter prices, exit prices, and escape prices. This is going to give you levels where you can go into the trade with so that you can pull out if things aren’t going your way. Without these set levels, you might not end up pulling out before the trade goes south. And this could cost you a pretty penny if you have a lot of money invested in a trade. This is going to ensure that you make some kind of profit off of most of your trades or at least that you don’t waste any of your money.

2. Don’t Trade During the First 15 Minutes of Day Trading

Even the most professional day traders don’t bother in trading during the first 15 minutes of the day. If you do trade during this time, you are much more likely to see big dips in the value of your trade and you’re more likely to do worse. This is because a lot of the trading during this time are panic trades that are just done off the cuff. It’s best to wait until those 15 minutes are up and you can go into trading with a much higher success rate.

3. Use Limit Orders and Not Market Orders

A market order is only going to be telling your broker to buy and sell at the best available price. However, when you are thinking about the best price, this doesn’t always mean that this is going to be the most profitable for you. The better way of going about things is to use limit orders. This is going to limit the maximum and minimum prices that you are going to buy and sell for. This is going to ensure that your trades

4. Avoid Using the Margin If You’re a Rookie Trader

If you are using the margin of your trading, this means that you are literally borrowing money from your brokerage to finance your trading. Depending on how advanced you are in day trading, you should limit how much you are using the margin to finance your trading. If you are to go under in your trading, this is not a position that you want to be in when you can’t pay back these finances. Under the right level of expertise, you can use margin trading to your advantage, but if you are a rookie trader – just stay away.

5. Make Sure to Have a Selling Plan

A lot of novice traders are going to go into trading without a solid plan of selling off their stock. Not everything is about buying, buying, and buying some more. You’re going to have to sell your stock at some point in order to make some kind of cash. That’s why you should come into buying stock with a clear strategy for selling off your stock at the right time and at the right price.

6. Always Keep a Journal of Your Trades

If you’ve ever spoken to an expert in the day trading field, he or she is going to tell you that the one thing that they can’t live without is their trading journal. This is what tells them all of their winning and losing trades, which then allows them to learn from their mistakes and see where their best trades were. This is something that you should definitely try to create and live by, as this is seriously going to help you out as you start out in this big wide world of day trading.

7. Use A Paper-Trading Account for Day Trading Practice

If you are just starting out with day trading and want to get a bit of practice in before you go into the real arena, then a paper-trading account is the best way to practice. This is not going to cost you any money and will allow you to practice so that you’re ready for what’s thrown at you in the real day trading world. Practice makes perfect, after all!

8. Never Act on Tips from Uninformed Sources

If you are going to buy or sell based on the advice of an uninformed source, then you should be prepared for the consequences that come with it. While it is important to acquire as much information as you can, but wrong information may turn out to be a hurdle in your chance of making a lot of money. However, there’s a much higher chance that this is going to turn out into a horrible trade that’s going to cost you a ton of money. Always base your trades on the most information as possible so that you make the best decision possible. By doing this, you are going to ensure that you get the most profit out of your trades.

There you have it! When you’re starting out with day trading, these are the top things that you’ve got to know if you want to be successful. Good luck out there!


A traveller by day and reader by night' is how I would sum up my life. My wanderlust led me to quit my cushy job at 28 and finally embark on a journey around the world. Since then, I have lived in many countries and soaked in as many books as possible during my travel journeys. Among them, the "Book of Mirdad" is still my personal favourite and holds a special place in my heart. My progression towards writing was inevitable and happened quite naturally. I have been writing for a few years now an...

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