Kavan Choksi Wealth Advisor Lists a Few Day Trading Tips for Beginners

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Day trading is a fast paced form of investing. In day trading, individuals purchase and sell off securities within the same trading day. As Kavan Choksi Wealth Advisor says, the prime goal of day trading is to profit from short-term price movements in stocks and other financial instruments. A combination of analysis and strategies are used by day traders. As opposed to long term investors, these traders are not much concerned with the fundamental value of the securities. Rather, they focus more on capturing immediate gains from market fluctuations.

Kavan Choksi Wealth Advisor provides valuable day trading tips for beginners

The appeal of day trading largely lies in its potential for quick gains. However, this trading method also does carry a significant level of risk. Day traders need a good understanding of the market and its trends to make informed and swift decisions. Staying abreast of economic reports, market headlines and other factors that can impact stock prices throughout the day is vital for day traders. Here are a few tips that day trading beginners must follow:

  • Knowledge is power: Apart from having a good understanding of the day trading procedures, traders also must stay up-to-date with the latest stock market news and events. This may include the Federal Reserve System’s interest rate plans, leading indicator announcements, as well as other economic, business, and financial news.
  • Set aside funds: Day traders need to carefully assess and commit to the amount of capital they are willing to risk on each trade. Several successful day traders risk less than 1% to 2% of their accounts per trade.
  • Set enough time aside: Day trading requires a good amount of time and attention. People who do not have enough time to spare should not consider day trading. Day traders must carefully track the markets and identify opportunities arising at any time during trading hours. Staying aware and moving swiftly is extremely important.
  • Start small: Newbie day traders should ideally focus on a maximum of one to two stocks during a session. As tracking and finding opportunities is much easier with lesser stocks. Trading fractional shares have become all too common in recent years. This allows investors to specify smaller dollar amounts that aim to invest.
  • Avoid penny stocks: While most newbie day traders do look for deals at low prices, it is better that they stay away from penny stocks. Such stocks are typically illiquid and the odds of hitting the jackpot with them are often bleak. S
  • Time the trades: A number of orders placed by traders and investors start to execute as soon as the markets open in the morning. This contributes to price volatility. A seasoned player should have the capability to identify patterns at the open as well as time orders to make profits.  However, for beginners, it might be smarter to read the market without making any moves for the first 15 to 20 minutes. The middle hours are generally less volatile, and then movement starts to pick up again toward the closing bell.

As Kavan Choksi Wealth Advisor says, to be a successful trader, one must move fast, but they do not have to think fast. They should rather develop a robust trading strategy in advance, and effectively stick to it.