The information available on the internet as a beginner in day trading can be very overwhelming and confusing. There is so much contradiction in the day trading strategies that it gets hard to select the ones which are actually good. On the internet and elsewhere, you will find tons of book, seminars, videos, articles, magazines, etc; all telling you to follow different paths for sure success. With the overwhelming amount of strategies for day trading, it is not a surprise that many newbie investors lose money in the initial period and then quit the line. As per a recent statistic, about 97% of the day-trading investors don’t break even in the first year of investment. Now, the question is – how do you choose a really good day trading strategy?
Identify your strategy:
Imagine this scenario- for every trade, there are two different types of opinions in mind of buyer and the seller. If you are purchasing a stock then you are doing this because you see growth in that stock, but wait a minute! You are purchasing the stocks from someone else, and he is selling the stocks, because he thinks otherwise about the potential of the stock. Same is the case when you try selling a stock, as someone else buys the same stock for benefits. There are always two different opinions, and in no situation- both can be true. This is all about day trading strategies, everyone has their own strategy to survive the market and make benefit from the day trading business.
Keep track of your mistakes and good decisions:
Even if you are constantly making wrong decisions with your stock investments, then it tells you that there is a flaw in your day trading strategy. At this time, you need to go back through your investments of the day and evaluate every decision you made. Sooner or later, you will come across the reason why you made a mistake. Yes, the market is very unpredictable and always fluctuates, but even you make bad decisions. The trick for success is to point out these mistakes and note down these for future references. Each one of the day trading strategies has flaws; all you need to do is to identify the ones that cause you loss, and then eliminate them. You can do similar thing about all the right decisions you made, by just keeping it all noted in a diary.
Constantly improve your day trading strategy:
Now the last suggestion is really very crucial for day trading investment. It is possible for the investors to have trouble in breaking even with their investment. By looking at your strategy of day trading, you can actually improve it to become a really great day trading strategy. For example- did you lose money in a stock by keeping it for 10 days, even though its exponential growth ended on day three? If this is the case, maybe you can really use a reminder in your diary not to do this mistake again. If you are planning to go for long investments, try doing this when prices are just over 1% above the average.
Don’t get caught following some guru’s strategy get some facts from a trusted source.