10 Day Trading Tips to Become a Better Trader

Warren Buffett once said, "The stock market is a device for transferring money from the impatient to the patient". This applies to both - traders and investors alike. However, if you are an absolute beginner, there is always some room for improvement. We have listed below the 10 best day trading tips that successful traders follow. Learn them mindfully and take note to level up your trading. Moreover, you can also check out the best day trading tips and make money from online trading in Indian stock markets.

This is why rookie traders often look for advice from experts who have carved their names in the industry. Read on to find out what you may require before venturing in this high-risk but ultimately-rewarding industry.

1. Learn from a Professional Trader - Day Trading Tips

It is always better to learn to trade from an expert before you jump directly into the ocean. Try and find out who has a good teaching methodology and carefully choose the one that suits your style. Most of the trainers or masters will definitely charge a fee for the time spared. Don't you worry! It is no fee. It is called investment.

After all, you are a trader and one day when you have made it big, you may be approached by newbies and you likewise charge them. But most importantly, if you invest into education, you are saving on market tuition from learning the lessons the hard way, on the expense of your account balance.

2. Pay Attention to the Financial News

Want to be the best trader around? Keep a close eye on the world around you especially business news. Stay updated about firms entangled in IP issues, Failed FDA nod, Board reshuffle, International projects, and dismal earnings estimates of the quarter.

Every news related to the firm you are making an investment in makes sense. Back your decision with these inputs. For a smarter decision while trading, keep abreast of every piece of information on your preferred investment firm.

3. Found Your Niche? Ace It!

Nobody can guarantee you a blockbuster return. You make your own choices and decisions and learn from your mistakes. Only you know which strategies or niches worked for you and which don't. If you really have the zeal to excel in day trading, you need to be right on top of your business.

Once you have found the niche to work upon, become really good at that. Master it and it will enhance your odds of success in the trading manifold.

4. Treat it like a Business!

Have a hobby? Pursue it somewhere else. Making money and day trading is a serious business. You don't do it for fun so even before you start to trade, you need to settle with the fact that it is a serious, time-consuming business and it will take time to break even. If you want to gamble, Las Vegas might have better odds.

5. Follow the Pros

Julius Caesar once said, "Experience is the teacher of all things". Trading experts, despite their level of training, have a lot to boast, thanks to experience.

Follow the moves of the pros and find out what are they investing in? When do they buy? When do they sell? For how long do they hold? Try and understand how profit is made. You can learn a great deal from the mistakes they once made and then harness them to your advantage.

6. Have Patience

Rome was not built in a day. It takes time to master any skill and the same goes with stock trading. It can give you the best returns only if you trade wisely. Researchers have shown that those who trade less tend to earn better than the one who trades very frequently.

This is just like stalking your prey and then striking when you have absolute chances of success. Always remember that when you trade in average and not-so-good setups, you lose on good deals and eventually your profits take a hit. Therefore, one crucial day trading tips are that quality matters over quantity.

7. Don't be Emotional & Follow Day Trading Tips

The world of trading calls that you keep a level mind and remember that if you let your emotions get the better of you while trading, you will most likely lose out on your money. Emotions make you take irrational, impulsive decisions which should never happen.

Frequent errors like letting your losses get out of proportion, adding to a losing position, not making timely withdrawals et cetera are made time and again. People fall into the emotional trap and make unconsidered decisions. And while you cannot help having them, learning to control your emotions will go a long way in positioning you as a shrewd trader. Work on the emotional quotient and you'll make wiser decisions.

8. Sharing is Caring

Now that you have learned from your mistakes and other's as well, it is time to share. You must share the experience you had while trading. You can start a blog, a YouTube channel or other medium for reaching out. Furthermore, you can have a comment section for answering the questions of your visitors.

This will not only help others but will certainly keep you disciplined. This habit will make you more accountable and you might think twice before making a trade you know, you should not be making.

9. When There Are No Good Plays, Don't Trade!

What? Do not be shocked as this is no less a practical tip than the rest. Sometimes it is good that you don't trade. Trading just for the mere fact is not a smart choice.

Trade only when you see money lying on the floor or the offer is too lucrative to let it go. Take your chances and remember that this is a highly dynamic world so weigh all possible benefits of making a move against sitting back and speculating.

10. Have Confidence

As obvious as it may sound, this is a key component of a refined trader. Whichever trading style you choose, you got to believe in yourself as failure to believe in the efforts you are putting or the decisions you are taking will never make you a winner. I might sound strange but people do not get good returns just because they cannot believe they will. This negative thinking results in negative returns.

Remember! Successful traders were also amateurs and novices when they started out. Their success has come from the hard work and efforts they have put in. Make mistakes and learn from them to continue trading until you start making profits.

As mentioned in the beginning, these day trading tips shared will let you learn some important hacks to improve Your game. Apply these diligently and you are sure to advance in your endeavors.

Good luck with your trading ventures! Don't forget to like and share this post on your social networks.

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A Day Trading Technique I Use Myself

Summer's here... time to dust off and fire up the old grill, slather yourself in sunscreen and squeeze into that bathing suit that somehow shrunk two sizes over the winter.
Although we've technically got several weeks before the calendar says so... it's here.

The kids are home from school, campgrounds around the country are booking out quickly and the stock market is about to go into a slumber... and perhaps fall out of bed.

The upside potential in the S&P 500 for the summer is pretty slim. In fact, we've been preparing for a healthy and long needed correction of 10 to 15% before the autumn begins (after the correction we could see a nice strong continuation of the bull market).

So, with that in mind, over the course of the past few weeks, we've covered an array of dividend paying stocks which can act as somewhat of a safe-haven in the event of the coming correction. But what do we do during these lazy crazy days of summer?

We are prepared for the worst, and that's great, but how do we take advantage of the low-volume, low opportunity months ahead? With some day trades of course. Imagine doing two trades a day, in-out-and-done before 11 am while sitting poolside? Sounds like summer to me!

Since day and swing trading is very time sensitive, we won't be sending trade recommendations to your email inbox. By the time you read it, it's already old and useless.

However, I will share with you a technique I personally use that has been my winning strategy in day and swing trades for years. In fact, I use the same strategy when investing for my mid and long-term portfolios.

So you can employ these tactics every morning, or whenever you feel like trading, and be done with your day before the pretty waitress brings you your club sandwich and diet soda.

It's all about the pre-market activity

Each morning around 8:30 am eastern time, I open my trading screen, visit several financial news sites and have a look at all pre-market activity. I'm specifically looking for stocks that are up 15% or more in pre-market... or are down 15%+ in pre-market

Once I find these (and there's usually a few of them every morning), I'll go to the stock's chart and news feed. What I'm looking for is the following:

• News that is moving the stock. As long as it's not a buyout offer, the stock will most likely be tradable. If there's no news out and the pre-market is up or down 15% or more, I stay away.

• A chart that shows movement the day before. You want to see a chart showing the last hour or two of the previous session had the stock ripping either up or down, the same direction as the pre-market activity. This shows us that there are people already in the stock on the news before we make our position. (important)

Now that we've found our two or three stocks that are up, or down 15%+ in pre-market, with news out that is not a buyout offer and a chart that shows people getting in or fleeing in the last two hours of the previous session... we have our potential winners.

This is where we do the exact opposite of what our good-sense tells us. We will short sell the stocks that are up big in pre-market, and we will go long the stocks that are getting crushed pre-market. Why?

Those charts we looked at? If they show people rushing in, or rushing out of a stock in the previous session, that means there are folks already nicely in the money on those positions. The stocks that are up significantly in pre-market have shareholders who are likely to sell within an hour of the open to lock up their gains. These are stocks we want to short as soon as the sucker buyers at the opening bell slow down.

The stocks that are down significantly in pre-market? There's a very strong chance that folks are short from the day before, and plan on covering and locking in their gains within the first hour or so of the market. These are stocks we want to buy as soon as the panic sellers at the opening bell slow down.

Usually by 10 am or so, the charts begin changing course. This is around when you make your position.

So while instinct tells us to buy stocks that are up in pre-market, and sell stocks that are down, we want to do the very opposite, as long as the news is there, the chart is there and we time our entries and exits properly we have a good chance at making some money in a short amount of time.

This day-trading technique is almost identical to our long-term investing thesis. Buy when others are selling, and sell when others are buying.

Here's to good investing!

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