Day Trading - What is the Key to Successful Day Trading? Part 2

If you're just starting out trading online more specifically day trading then it's always advisable to start out with low volatility stocks such as utilities and closed ended funds. This way you can develop your skills and expertise while improving your experience before jumping into the volatile but more profitable Dow Stocks like technology and momentum plays. But you must keep to your risk management plan, and keep emotions out of it.

When you're just getting started always spend at least a few weeks paper trading online before risking your own money. Paper trading is simply placing trades live in the market place but with "play money" so you will buy and sell as normal in real-time without risking any of your own money. This gives you practice and help you to understand in a practical and live manner how the stock market works, and how you make money from it. Once you have had a few trades under your belt, paper trade that is, and you feel more comfortable making money, then I always recommend that you start small with your own money. Never risk more money than you can afford to lose, this is rule number two when it comes to day trading.

Always keep your emotions outside of your trades. To not get caught up in fear of losing, or greed of gain. These two components are the driving forces of the stock market, greed and fear. If you can discipline yourself to trade outside of these emotions then you can use it to your advantage.

Use a reputable and experience Day trading platform. There are many trading platforms online, so make sure that you do your due diligence before committing to one. You will always have the opportunity to paper day trade them so you will get a feel for how quick they place your trade and how fast they sell your position. The this is important because if the market should move against you, you will want to know that you can exit a trade as quickly as possible without putting too much of your capital at risk.

Day Trading can be fun and very profitable but you must also assume the risks, and know that the markets are volatile and can change in an instant. That is why day trading appeals to so many people because you will not have your money in the market for more than a few minutes at any given time, and by the time the bell rings, you should have sold all your position and be free and clear from the market, ready to start a fresh the next day.

The second key to successful day trading is to use a reliable trading software program that has proven results in helping you to place profitable trades.

Tim Nelson has been writing articles showing people how to trade successfully online for over 8 years. His latest sites Trundle Bed Frame and Trundle Beds For Kids are not exactly about trading, but it is a helpful resource if you have kids in your life. A Healthy Kid Is A Well Rested Kid.

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