Getting started with Day Trading is a big adjustment for almost anyone. Even if you worked in a financial services company, this may be the first time that you’ve had complete control over how you spend your time and when you do your trades. If you want to start out right, it’s a good idea to spend some time making a plan for how you’re going to allocate your attention and time so that you can develop the skills and confidence that you’ll need to start bringing in a profit.
Don’t be too eager to start trading the second the market opens. It’s common for there to be a lot of buy and sell orders that need to be processed at this time of day, from the people who sent them in while the market was closed. This makes the first 15 minutes or so of the day particularly volatile and risky, and not a great time for rookies to be experimenting.
Instead, use this time to do a quick review of the financial news and your plans for how you’re going to make trading decisions. Whether you’re using the techniques developed by Markus Heitkoetter of Rockwell Trading or you’re trying to figure it out on your own, starting the day by making sure you have a clear picture in your mind for what you need to do is the best path to Day Trading success.
The tougher part of the day is making sure that you stick with the plan that you’ve set for yourself. Traders often miss out on opportunities by getting too fixated on the amount they spent, and not thinking of an investment purely in terms of what it could be worth in the future. It can help to practice with pretend trading on paper first, just to give yourself a chance to follow your plan without the anxiety of having real money at stake. This is also a good opportunity to make sure that you fully understand it, and how to follow through with it.
The actual mechanics of online trading are usually fairly simple. Companies work hard to make sure that their interface is simple and intuitive enough that they’re not chasing customers away from making trades. The part of learning to trade online that usually takes more work is getting up to speed on how to take in information and use it to make decisions.