Our Day Trading Quick Start Guide
The world of day trading can be a scary place. If you don’t have a basic understanding of what you’re doing, then you will lose money, and probably end up so frustrated that you never want to make another trade again.
Understand that every day trader starts out knowing nothing, and they got started learning the basics first.
Below is a brief introduction to what day trading is, and a quick overview of the equipment needed to get started.
What is day trading?
Day trading is slightly different from other types of investing, as the securities are only held for one day. This certainly reduces the risks compared to long term investing, as there is no chance of big losses occurring overnight.
However, because everything is done during the course of one day, it means trades often runs at a frantic pace. It take a while for a beginning day trader to adapt to this fast way of trading. Some people never adapt at all.
At the end of the day, this form of trading is a crazy business and not everybody is cut out for it. If you think that you are, then it will pay you in the long run to build a solid foundation and learn the business properly.
Learn more about the different day trading strategies and then decide which one will be the most suitable for you to follow. Once you pick a strategy, stick with it, and don’t be distracted by shiny objects.
What equipment do I need to start day trading?
Although it is not essential to spend thousands on day trading equipment to be successful, there are a few basic things you should invest in to get you started.
A good PC
The majority of personal computers available to buy will have the required processing power so you can start day trading. One thing to keep in mind is the size of the monitor, because when you are spending large amounts of time in front of the computer a small monitor can be punishing to your eyes. A large monitor will also allow you to have multiple windows open at any one time, so you can do more trading.
A backup PC
It doesn’t matter how expensive your PC is, it will probably break down at some point or suffer from technical glitches. It’s for this reason that it is always beneficial to have a backup PC nearby, so you can quickly switch over and not lose any time day trading.
A dial-up connection just won’t cut it. In day trading speed is the key, and often decisions need to be made in a matter of seconds. For this reason, it’s essential that you have high speed internet access that is reliable.
Once you have decided on the day trading strategy you will be following, it’s important to track your performance so you can analyze everything at the end of a days trading. Using a software program such as Microsoft Excel will allow you do this.