Before you get lost in stock trading software reviews and underground stock alerts, its critical to do the foundation of learning required to be a day trader. Its a risk filled environment, going against classic hold and accumulate stock advice by making money in tiny increments from price fluctuation. There is a reason it hasn’t been available to the public until now- the tools needed simply weren’t there without the internet. Now the potential rewards- and risks- are there for everyone. Here is how not to be a stupid trader.
Stock trading software is less important than a tangible plan
Before you even think of signing up for a penny stock newsletter, let alone buy custom software, stop, breathe and make a plan. There’s a ton of different trading strategies, styles and more you can use- this isn’t what that is about. You need to know how you will identify successful trades [performance metrics], what particular facets you intend to look for to identify your good trades, what stock you are interested in trading and what your exit strategy will be. Then, stick to the plan. Emotional flipping is the single best way to lose money on the stock exchange. Don’t let fear and impulse sales control you. Don’t change strategies because they stopped working. Losses are part of the game. Change because market dynamics say so, not because you panicked.
Follow the news
A penny stock newsletter can be helpful to you here, but you should consider other, mainstream news too. The amount of day traders who try to trade with no knowledge of the wider economic impacts on the market is staggering- and stupid. Be smart, know whats happening.
Journal and review
Unsuccessful day traders don’t analyse whats happening with their trades. When the day is over, analyse your trades and why they worked/didn’t. Keep a journal so you can monitor where you win and lose over the long term. Most good stock trading software will have this feature built in. You cant learn what you cant quantify- be smart.
Expect and adapt
Expect the unexpected sounds corny, but its true. Underground stock alerts may help you stay on top of the market, but in the end you will have to adapt your strategies and tactics with market changes. Be dynamic and willing to change with the times.
Stop-loss and limit orders are your friend
Stop-loss orders exit you from trades if a certain amount of money is lost. Limit orders say you wont pay more than x amount for something. Using both these critical tools with every trade will make your life easier and your losses less steep- protect yourself at all times by using them with every trade.
Day trading can be risky, but its the hasty and the ill-prepared who suffer bad consequences. Most stock trading software has features to help you implement all of these tips simply and effectively- don’t be the trader who loses their shirt, trade smart not hard.