Day Trading Basics
Why Are Day Trading Basics Important?
Day trading is a complicated business that requires a lot of knowledge, skills, and discipline. It is a lucrative career, as long as it is done properly, with the right mindset and the right education. Traders who foray into day trading must be armed with day trading basics to excel.
Many budding traders get lured into day trading by its high-profit potential. However, they cannot ignore the fact that day trading comes with huge risks as well. Therefore, to manage the balance between profits and losses, to gain an in-depth understanding of the markets, and for adequate risk and money management, day traders must be equipped with the right day trading basics.
What Do Day Trading Basics Include?
Day trading basics do not comprise only of theoretical education. In addition to the educational courses, day traders need to be outfitted with practical experience, proper mentoring, and trading skills and strategies.
Thus, day trading basics include online courses, finding a good mentor, and watching live trading. Tradenet offers all of these and much more to its students. The introduction to basics of day trading begins with various courses like the Self-Study Course, the Star Trader Course, and the Top Trader Course.
After traders have gained knowledge through the online sessions, recorded material, and the videos, they can delve deeper into the day trading basics with the help of live trading chat room. They watch live trading and gain in-depth and practical understanding from the industry veterans. Traders can also ask questions and chat with the analysts for real-time advice and trading support. Overall, aspiring traders get access to theoretical education and practical mentoring and support.
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Day Trading Basics Explained
Intraday Trading Basics
Intraday trading basics include the fundamentals of intraday trading. It encompasses the principles of day trading, trading psychology, use of indices and sectors, and how to read and analyze charts.
The day trading basics also include technical aspects like candlesticks, market indicators, volumes and trends, and support and resistance. Traders who start the day trading journey must be aware of all these basics before they learn the broader aspects and risk their capital.
The intraday trading basics also comprise of the use of trading platforms and charts in real-time, identification of trading patterns and formations, and how to handle special circumstances like gaps and breakouts. All the basics, combined with robust mentoring and trading support, are enough to launch budding traders into becoming professional and profitable traders.
Some of the day trading basics that are most suitable for beginners are discussed below:
- Traders must start with low capital. Ideally, traders must not risk more than 1%-2% of their trading account balance in a single trade. For instance, if the trading account size is $30,000, traders must not risk more than $300 in one trade. This helps to preserve capital and remain in the game for long.
- Traders must learn the use of stop-loss strategies for risk management. Stop loss helps to limit the losses and not let the entire capital go out of hand.
- All traders must try and avoid penny stocks. They look cheap and lucrative but are illiquid and have high chances of being a scam or fraud. Unless a trader has done the complete research, he must stay clear of investing in penny stocks.
- Traders must also know of the different trading order types, including market order, limit order, stop order, and stop limit order.
Day Trading Basics YouTube
The day trading basics are also available on Tradenet’s YouTube trading channel. Beginners can watch lots of videos on the Youtube channel of Tradenet and learn day trading basics on YouTube.
The YouTube channel of Tradenet contains numerous recorded live day trading videos of Meir Barak. These videos can be excellent sources to understand the basics of intraday trading and include content like Day Trading for $4,875 in 60 Minutes.
Budding traders can also access free day trading course on Tradenet’s YouTube channel. The course has day trading basics explained in the form of short educational videos like Volumes & Trends. These methods provide new traders with reliable and consistent means to join the wonderful world of trading.
The YouTube channel also offers an in-depth understanding of the technical basics of day trading in a section called Tradenet Wiki. The videos on Tradenet Wiki explain how to use technical analysis in day trading, how to read Japanese candlesticks, etc.
Overall, learning day trading basics are critical to new and experienced traders. Tradenet provides an excellent platform for traders to learn the fundamentals through its online courses, YouTube videos, and live trading chat room.